Investroy

USD/CAD: bias change. Where to buy from? Double Fibonacci magic

Long
OANDA:USDCAD   U.S. Dollar / Canadian Dollar
As you may have noticed from the publication we made on Monday, our initial bias on this pair was a long-term sell. However, after noticing the recent price action, our bias has shifted by 360 degrees.

Looking at the 8H timeframe chart, we can notice that the price has formed an area of support at the 1.286-1.287 levels. At the same time, if we use the Fibonacci retracement tool, we can notice that the 0.382 level perfectly aligns with this freshly formed support.

At the moment, the price is trading around the crucial zone of resistance identified on the graph. After an impulsive move, a correctional one is definitely needed. Thus, we are monitoring the price action and patiently waiting for the price to re-test the previous level of resistance now turned support that lines up with 50% Fibonacci retracement level before going long.

As of right now, we do not have any clear Take Profit targets in mind, so we will keep it open and constantly monitor the price action.

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