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.
Put your trading knowledge into action. Create a trading account now.
Disclaimer: The publication of Analytics is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. The Analytics is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the Analytics. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its Analytics.