markyoung

USDCAD Long entry at FIb retracement

Long
FX:USDCAD   U.S. Dollar / Canadian Dollar
This four hour chart has a rolling Fibonacci pattern based on 8 hour bars overlaid - USDCAD has tracked nicely to 8 hour fibs in the past, often cycling between the 50% and -23.6% extensions of the most recent swing (highlighted by the arrow line). RSI in oversold territory with slight bullish divergence ( RSI slightly up versus lower lowers in recent bars)

Entry @ 1.32654 , initial target the yellow 50% retrace line @ 1.338, stop below -23.6% line
Comment:
The same 8 hour Fib patterns applied to the US & Canadian currency indexes shows the DXY is finding support after a steady downtrend while the CXY is encountering resistance after a steady uptrend. In the past, this confluence has proved to be a tradeable reversal point for USDCAD and other pairs.

Fibs drawn consistently to the exact same rules will produce recurring patterns and act as a leading & and lagging indicator by showing potential future retracement points based on past price action.
Comment: I should add that the 0% line above may now provide resistance until closed above, so a a far more conservative entry would be to wait until that happens.

Comments

Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out