FX.co ★ USDCAD Potential for Bearish Continuation | 10th 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 has also broken under the descending trendline indicating strong bearish momentum. If this bearish momentum continues, expect the price to possibly head towards the 1st support at 1.33163, where the 78.6% Fibonacci line is. In an alternative scenario, price could head back up to retest the 1st resistance at 1.33948, slightly below where the 20% Fibonacci line is.

Trading Recommendation

Entry: 1.33948

Reason for Entry:

Retest the 1st resistance line

Take Profit: 1.32259

Reason for Take Profit:2nd support line

Stop Loss: 1.34841

Reason for Stop Loss:

2nd resistance line