FX.co ★ USDCAD Potential for Bearish Dip | 23rd Feb 2022

On the H4 chart , price is near 1st resistance level of 1.27961 in line with 61.8% Fibonacci retracement and 78.6% Fibonacci projection. Price can potentially dip to the 1st support level of 1.26600 in line with 38.2% Fibonacci retracement and 100% Fibonacci projection. Our bearish bias is supported by the stochastic indicator as it is near resistance level. Alternatively price can go to the 2nd resistance level which is also the graphical overlap resistance.

Trading Recommendation

Entry: 1.27961

Reason for Entry:

61.8% Fibonacci retracement and 78.6% Fibonacci projection

Take Profit: 1.276600

Reason for Take Profit:

Swing low, 38.2% Fibonacci retracement and 100% Fibonacci projection

Stop Loss: 1.28331

Reason for Stop Loss:

Graphical overlap resistance