FX.co ★ USDCAD Potential for Bullish Rise | 3rd January 2023

On the H4 chart, the overall bias for USDCAD is bullish . To add confluence to this, the price is above the Ichimoku cloud which indicates a bullish market. If this bullish momentum continues, expect the price to possibly head towards 1st resistance line at 1.38082, where the 78.6% Fibonacci line is. In an alternative scenario, price could break the 1st support at 1.35029, where the 38.2% Fibonacci line is, before heading towards the 2nd support at 1.33578, where the 20% Fibonacci line is.

Trading Recommendation

Entry: 1.36119

Reason for Entry: Immediate buy entry in-line with the previous high to ride the bullish momentum

Take Profit: 1.38082

Reason for Take Profit:

1st resistance line

Stop Loss: 1.35029

Reason for Stop Loss:

1st support line