FX.co ★ USDCAD Potential for Bearish Continuation | 9th January 2023

On the H4 chart, the overall bias for USDCAD is bearish. To add confluence to this, the price is below the Ichimoku cloud which indicates a bearish market. To add support to this bias, price is also along a descending trendline. If this bearish momentum continues, expect the price to possibly head towards the 1st support at 1.34011, where the 61.8% Fibonacci line is. In an alternative scenario, price could head back up to retest the 1st resistance at 1.35206, where the 38.2% Fibonacci line is.

Trading Recommendation

Entry: 1.35206

Reason for Entry:

Retest the 1st resistance line

Take Profit: 1.33242

Reason for Take Profit:2nd support line

Stop Loss: 1.36860

Reason for Stop Loss:

2nd resistance line