USDCAD Approaching Support, Prepare For A Bounce

USDCAD Approaching Support, Prepare For A Bounce

USDCAD is approaching its major support, we can expect to see a bounce.

Buy above 1.2711. Stop loss at 1.2636. Take profit at 1.2936.

Reason for the trading strategy (technically):

USDCAD is approaching its support at 1.2711 (61.8% Fibonacci extension, 61.8% Fibonacci extension, 61.8% Fibonacci retracement, horizontal overlap support) where we expect a bounce, pushing price all the way up to its resistance at 1.2936 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance). We do however have to take note of the intermediate resistance at 1.2830 (61.8% Fibonacci extension, 23.6% Fibonacci retracement, horizontal overlap resistance).
Stochastic (89, 5, 3) is approaching its support at 5.7% where we expect to see a bounce. A bullish divergence with price has also been identified which contributes to our bullish bias.

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