USDCAD Long entry at FIb retracement
Updated
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
Entry @ 1.32654 , initial target the yellow 50% retrace line @ 1.338, stop below -23.6% line
Note
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.
Note
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.
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