FX.co ★ USDCAD, Bullish Pressure | 7th Feb 2022

On the H4, with prices moving above the Ichimoku cloud, we see the potential for a bounce from our 1st support at 1.27100 in line with horizontal overlap support and 61.8% Fibonacci retracement towards our 1st resistance at 1.28360 in line with horizontal swing high resistance and 78.6% Fibonacci retracement. Alternatively, price may break 1st support structure and head for 2nd support at 1.26519, in line with the horizontal swing low support.

Trading Recommendation

Entry: 1.27100

Reason for Entry:

Horizontal overlap support and 61.8% Fibonacci retracement

Take Profit: 1.28360

Reason for Take Profit:

Horizontal swing high resistance and 78.6% Fibonacci retracement

Stop Loss: 1.26519

Reason for Stop Loss:

Horizontal swing low support