FX.co ★ USDCAD Potential for Bullish Continuation | 22nd Feb 2022

On the H4, prices are on bullish momentum and abiding to an ascending trendline. With RSI being at levels where bounces previously occurred, we can expect bullish continuation from our 1st support at 1.27237 in line with 38.2% Fibonacci retracement towards our 1st resistance at 1.27817 which is a strong resistance and in line with 100% Fibonacci retracement and 78.6% Fibonacci extension. Alternatively, price may break 1st support structure and head for 2nd support, which coincides with the ascending trendline and 61.8% Fibonacci retracement at 1.27089.

Trading Recommendation

Entry: 1.27237

Reason for Entry:

38.2% Fibonacci retracement

Take Profit: 1.27817

Reason for Take Profit:Strong resistance and in line with 100% Fibonacci retracement and 78.6% Fibonacci extension

Stop Loss: 1.27089

Reason for Stop Loss:

Ascending trendline and 61.8% Fibonacci retracement