FX.co ★ USDCAD, Bearish Pressure | 5th Jan 2022

On the H4, with price moving below the Ichimoku indicator and in view of the recent triangle breakout pullback, we have a bearish bias that price will drop from our 1st resistance at 1.27235 which is in line with horizontal overlap resistance and 50% Fibonacci retracement level to 1st support at 1.26680, which is in line with horizontal swing low support and 78.6% Fibonacci retracement. Alternatively, price may rise up to our 2nd resistance at 1.27578, which coincides with horizontal swing high resistance and 78.6% Fibonacci retracement level .

Trading Recommendation

Entry: 1.27235

Reason for Entry:

Horizontal overlap resistance and 50% Fibonacci retracement level

Take Profit: 1.26680

Reason for Take Profit:

Horizontal swing low support and 78.6% Fibonacci retracement

Stop Loss: 1.27578

Reason for Stop Loss:

Horizontal swing high resistance and 78.6% Fibonacci retracement level