FX.co ★ USDCAD Potential for Bearish Drop | 5th January 2023

On the H4 chart, the overall bias for USDCAD is bearish . To add confluence to this, the price is under the Ichimoku cloud which indicates a bearish market. If this bearish momentum continues, expect the price to possibly head towards the 1st support at 1.33578, where the 20% Fibonacci line is. In an alternative scenario, price could head back up to break the 1st resistance at 1.35029, where the 38.2% Fibonacci line is, before heading towards the 2nd resistance at 1.36865, where the 61.8% Fibonacci line is

Trading Recommendation

Entry: 1.35029

Reason for Entry: Retest 1st resistance line

Take Profit: 1.33578

Reason for Take Profit:

1st support line

Stop Loss: 1.36865

Reason for Stop Loss:

2nd resistance line