Title
USDCAD H4 I Bearish drop off
Type
Bearish drop
Preference:
The price rejected off the pivot at 1.4000, which is an overlap resistance that aligns with the 61.8% Fibonacci retracement. A drop from this level could lead the price toward the 1st support at 1.3943, a pullback support that is slightly below the 50% Fibonacci retracement.
Alternative Scenario:
If the price breaks above the pivot, it could rise to the 1st resistance at 1.4030, which is an overlap resistance that aligns with the 78.6% Fibonacci retracement.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.