FX.co ★ USDCAD, Bearish Pressure | 31st Dec 2021

On the H4, with price breaking the ascending trendline at 1st resistance of 1.27676 which is in line with horizontal overlap resistance, price can potentially drop to 1st support at 1.26839, which is in line with horizontal swing low support, 78.6% Fibonacci retracement level. Alternatively, price may rise up to 2nd resistance at 1.2832, which coincides with horizontal swing high resistance, 38.2% Fibonacci retracement level . This is further supported by how price is now holding below the Ichimoku cloud resistance.

Trading Recommendation

Entry: 1.27676

Reason for Entry:

Horizontal overlap resistance, Ascending trendline breakout

Take Profit: 1.26839

Reason for Take Profit:

Horizontal swing low support, 78.6% Fibonacci retracement level

Stop Loss: 1.2832

Reason for Stop Loss:

Horizontal swing high resistance, 38.2% Fibonacci retracement level