USDCAD is facing bearish pressure, potential for more downside!

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Price has shown a bearish breakout below the neckline of the Head and Shoulder pattern and also is holding below the EMA as well. We could see a further drop from 1st resistance at 1.24098 in line with graphical overlap resistance and 23.6% Fibonacci extension and towards 1st support at 1.21610 in line with -27.2% Fibonacci retracement and 61.8% Fibonacci extension. Our bearish bias is further supported by how Price is holding above the Ichimoku cloud and MACD is holding below the 0 line. Otherwise Price may bullish towards 2nd resistance at 1.24985 in line with 23.6% Fibonacci retracement and 38.2% Fibonacci extension.

Trading Recommendation

Entry: 1.24098

Reason for Entry:

Graphical overlap resistance and 23.6% Fibonacci extension

Take Profit: 1.21610

Reason for Take Profit:

-27.2% Fibonacci retracement and 61.8% Fibonacci extension

Stop Loss: 1.24985

Reason for Stop Loss:

23.6% Fibonacci retracement and 38.2% Fibonacci extension.

The material has been provided by InstaForex Company - www.instaforex.com

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