FX.co ★ USDCAD, Bearish Pressure | 10th Feb 2022

On the H4, with prices moving below the Ichimoku cloud, we see a potential drop to our 1st support at 1.25644 in line with horizontal overlap support and 161.8% Fibonacci projection from our 1st resistance at 1.26664 in line with horizontal overlap resistance. Alternatively, price may break 1st resistance structure and head for 2nd resistance at 1.27779, in line with the horizontal swing high resistance.

Trading Recommendation

Entry: 1.26664

Reason for Entry:

Horizontal overlap resistance

Take Profit: 1.25644

Reason for Take Profit:

Horizontal overlap support and 161.8% Fibonacci projection

Stop Loss: 1.27779

Reason for Stop Loss:

Horizontal swing high resistance