FX.co ★ USDCAD bullish bounce | 29th Oct 2021

On the H4, with stochastics bouncing off support, we are expecting to see price climb to 1st resistance at 1.23830 in line with the graphical overlap resistance from 1st support at 1.23423 in line with the 50% Fibonacci retracement and confluent to our graphical overlap support. Price may even break 1st resistance and head for 2nd resistance at 1.24018 in line with the 78.6% Fibonacci retracement. Alternatively, it may break 1st support and head for 2nd support at 1.23195 in line with 78.6% Fibonacci retracement and horizontal swing low support.

Trading Recommendation

Entry: 1.23423

Reason for Entry:

50% Fibonacci retracement and Graphical overlap support

Take Profit:1.23830

Reason for Take Profit:

Graphical overlap resistance

Stop Loss:1.23195

Reason for Stop Loss:

78.6% Fibonacci retracement and Horizontal swing low support.