FX.co ★ USDCAD, Bearish Pressure | 12th Jan 2022

On the H4, price is reacting below our 1st resistance level at 1.13852 which is in line with horizontal swing high resistance, 50.0% Fibonacci retracement level. We are biased that price will potentially drop to 1st support at 1.1233, which is in line with horizontal swing low support. Alternatively, price may rise up to our 2nd resistance at 1.14633, which coincides with 161.8% Fibonacci extension level and horizontal swing high resistance . This is further supported by how price is likely to reverse off the Stochastic resistance level.

Trading Recommendation

Entry: 1.13852

Reason for Entry:

Horizontal swing high resistance and 50.0% Fibonacci retracement

Take Profit: 1.1233

Reason for Take Profit:

Horizontal swing low support

Stop Loss: 1.14633

Reason for Stop Loss:

Horizontal swing high resistance and 61.8% Fibonacci retracement