FX.co ★ USDCAD, Bearish Pressure | 11th Jan 2022

On the H4, with price moving below the ichimoku cloud, we have a bearish bias that price will drop from our 1st resistance at 1.26939 which is in line with horizontal swing high resistance to 1st support at 1.26234, which is in line with horizontal swing low support and 78.6% fibonacci retracement. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.27301, which coincides with horizontal swing high resistance and 61.8% Fibonacci retracement.

Trading Recommendation

Entry:1.26939

Reason for Entry:

Horizontal swing high resistance

Take Profit: 1.26234

Reason for Take Profit:

Horizontal swing low support and 78.6% fibonacci retracement

Stop Loss: 1.27301

Reason for Stop Loss:

Horizontal swing high resistance and 61.8% Fibonacci retracement