On the H4 chart, the overall bias for USDCAD is bearish. To add confluence to this, the price is below the Ichimoku cloud which indicates a bearish market. To add support to this bias, price has also broken under the descending trendline indicating strong bearish momentum. If this bearish momentum continues, expect the price to possibly head towards the 1st support at 1.33163, where the 78.6% Fibonacci line is. In an alternative scenario, price could head back up to retest the 1st resistance at 1.33948, slightly below where the 20% Fibonacci line is.
Trading Recommendation
Entry: 1.33948
Reason for Entry:
Retest the 1st resistance line
Take Profit: 1.32259
Reason for Take Profit:2nd support line
Stop Loss: 1.34841
Reason for Stop Loss:
2nd resistance line
