FX.co ★ USDCAD Potential For Bearish Drop | 12th September 2022

On the H4, with the price breaking the ascending channel, below the ichimoku cloud, and there's a possible "double top" pattern, we have a bearish bias that the price may drop to the 1st support at 1.29859, which is in line with the overlap support and 50% fibonacci retracement. If the 1st support is broken, the 2nd support could be at 1.28938, where the overlap support and 61.8% fibonacci retracement are. Alternatively, the price may rise to the 1st resistance at 1.30958, where the "neckline" of the "double top" pattern and 50% fibonacci retracement are.

Trading Recommendation

Entry: 1.29859

Reason for Entry: Overlap support and 50% fibonacci retracement

Take Profit: 1.28938

Reason for Take Profit: Overlap support and 61.8% fibonacci retracement

Stop Loss: 1.30958

Reason for Stop Loss:"Neckline" of the "double top" pattern and 50% fibonacci retracement