FX.co ★ USDCAD, Bearish Pressure | 4th Jan 2022

On the H4, with price at the resistance of the Ichimoku indicator and horizontal swing high resistance, we have a bearish bias that price will drop from our 1st resistance at 1.27654 which is in line with horizontal overlap resistance, 38.2% Fibonacci retracement level to 1st support at 1.26839, which is in line with horizontal overlap support and 61.8% Fibonacci retracement. Alternatively, price may rise up to our 2nd resistance at 1.28282, which coincides with horizontal swing high resistance, 61.8% Fibonacci retracement level .

Trading Recommendation

Entry: 1.27654

Reason for Entry:

Horizontal overlap resistance and 38.2% Fibonacci retracement level

Take Profit: 1.26839

Reason for Take Profit:

Horizontal overlap support and 61.8% Fibonacci retracement

Stop Loss: 1.28282

Reason for Stop Loss:

Horizontal swing high resistance and 61.8% Fibonacci retracement level