USDCAD, Potential For Bearish continuation | 30th June 2022

On the H4, with price's recent break of the ichimoku cloud and how it is moving within a descending channel , we have a bearish bias that price will continue to drop from the 1st resistance at 1.29124 in line with the horizontal pullback resistance and 38.2% Fibonacci retracement to the 1st support at 1.28224 in line with the 50% Fibonacci retracement and horizontal swing low support. Alternatively, price may reverse off the 1st resistance and rise to the 2nd resistance at 1.30077 where the 78.6% Fibonacci retracement and horizontal swing high resistance is.

Trading Recommendation

Entry: 1.28224 Reason for Entry: 50% Fibonacci retracement and horizontal swing low supportTake Profit: 1.29124

Reason for Take Profit: Horizontal pullback resistance and 38.2% Fibonacci retracement

Stop Loss: 1.30077

Reason for Stop Loss:

78.6% Fibonacci retracement and horizontal swing high resistance