FX.co ★ USDCAD bearish continuation | 21st Oct 2021

On the H4, price has broken the ascending trendline and with the existing bearish sentiment where price is moving below the ichimoku, we may expect to see price head for 1st support at 1.23219 in line with the 61.8% Fibonacci retracement which is a retest and pullback to the trendline. Alternatively, price may see price break 1st resistance structure at 1.23633 in line with the 61.8% Fibonacci retracement level and head for 2nd resistance at 1.23844.

Trading Recommendation

Entry:1.23633

Reason for Entry:

61.8% Fibonacci retracement and Horizontal overlap resistance

Take Profit: 1.23219

Reason for Take Profit:

61.8% Fibonacci retracement and Graphical overlap support

Stop Loss:1.23844

Reason for Stop Loss:

Horizontal swing low support.