FX.co ★ USDCAD, Potential For Bearish Continuation | 4th July 2022

On the H4, with price expected to reverse off the ichimoku cloud , we have a bearish bias that price will continue to drop from the 1st resistance at 1.29529 in line with the horizontal swing high resistance and 50% Fibonacci retracement to the 1st support at 1.28039 in line with the 50% Fibonacci retracement and horizontal swing low support. Alternatively, price may reverse off the 1st resistance and rise to the 2nd resistance at 1.30112 where the 78.6% Fibonacci retracement and horizontal swing high resistance is.

Trading Recommendation

Entry: 1.29529 Reason for Entry: Horizontal swing high resistance and 50% Fibonacci retracement

Take Profit: 1.28039

Reason for Take Profit: 50% Fibonacci retracement and horizontal swing low support

Stop Loss: 1.30112

Reason for Stop Loss:

78.6% Fibonacci retracement and horizontal swing high resistance