FX.co ★ USDCAD Potential for Bullish Rise | 19th August 2022

On the H4, with the price moving within the ascending trendline and above the ichimoku cloud, we have a bullish bias that the price may rise to the 1st resistance at 1.29890, where the swing high, 61.8% fibonacci projection, 50% fibonacci retracement are. If the price breaks the 1st resistance, we can expect the price to rise to the 2nd resistance at 1.30508, which is in line with the 100% fibonacci projection and previous swing highs. Alternatively, the piece may drop to the 1st support at 1.28966, where the current swing low, previous swing highs and 23.6% fibonacci retracement are. IF the price breaks the 1st support, we can expect the price drop down to the 2nd support at 1.28470, which is in line with the swing low and 50% fibonacci retracement.

Trading Recommendation

Entry: 1.29890

Reason for Entry:Swing high, 61.8% fibonacci projection, 50% fibonacci retracement

Take Profit: 1.30508

Reason for Take Profit: 100% fibonacci projection and previous swing highs

Stop Loss: 1.28966

Reason for Stop Loss:

Current swing low, previous swing highs and 23.6% fibonacci retracement