FX.co ★ USDCAD, Bullish Pressure | 31st Jan 2022

On the H4, with prices moving above the Ichimoku cloud, we see the potential for a bounce from our 1st support at 1.27432 in line with Horizontal overlap support and 23.6% Fibonacci retracement towards our 1st resistance at 1.28498 in line with horizontal swing high resistance and 127.2% Fibonacci extension. Alternatively, price may break 1st support structure and head for 2nd support at 1.26712, in line with 50% Fibonacci retracement and horizontal overlap support.

Trading Recommendation

Entry:1.27432

Reason for Entry:

Horizontal overlap support and 23.6% Fibonacci retracement

Take Profit: 1.28498

Reason for Take Profit:

Horizontal swing high resistance and 127.2% Fibonacci extension

Stop Loss: 1.26712

Reason for Stop Loss:

Horizontal overlap support and 50% Fibonacci retracement