Technical Analytics Report

USD/CAD: Fibonacci Analysis Report 10 Feb 2021

 

USD/CAD, H4

On the daily chart, the price dropped below 1.2710 (61.8% retracement) and tries to break through the counter fan to open the way for a decline to the area of 1.2605 (100.0% retracement). The breakout of 1.2710 allows growth to 1.2742 (correction of 50.0%, the middle line of Bollinger bands), 1.2775 (correction of 38.2%), and 1.2815 (correction of 23.6%). Technical indicators do not give a clear signal. Bollinger bands are directed downwards and MACD grows in the negative zone, which indicates that the potential for a decline remains. However, Stochastic is preparing to leave the oversold zone and form a buy signal.

USD/CAD, D1

On the weekly chart, the price reversed around 1.2885 (38.2% retracement), broke below 1.2775 (23.6% retracement), and now tries to return to the area of 1.2590 (0.0% retracement). The breakout of 1.2775 allows growth to 1.2885 or 1.2980 (correction of 50.0%). Technical indicators don’t give a single signal. Bollinger Bands reverse upwards. MACD is at the zero line, its volumes are insignificant. Stochastic entered the oversold zone, which indicates the possibility of an upward reversal.

Support And Resistance

The price may decline to 1.2605 (100.0% correction, H4) and 1.2590 (0.0% correction, D1) after consolidation below 1.2670 (61.8% ascending fan line, H4). Growth to the levels of 1.2775 (correction 38.2%, H4 and 23.6%, D1) and 1.2885 (correction 38.2%, D1) is possible after the breakout of 1.2710 (correction 61.8%, H4).

Resistance levels: 1.2710, 1.2742, 1.2775, 1.2885.

Support levels: 1.2670, 1.2605, 1.2590.

Trading Tips

Short positions may be opened below 1.2670 with the targets at 1.2605, 1.2590, and stop loss 1.2710. Implementation period: 6–7 days. Long positions may be opened above 1.2710 with the targets at 1.2775, 1.2885, and stop loss 1.2675.

Scenario

TIMEFRAME: WEEKLY

RECOMMENDATION: SELL STOP

ENTRY POINT: 1.2665

TAKE PROFIT: 1.2605, 1.2590

STOP LOSS: 1.2710

KEY LEVELS: 1.2590, 1.2605, 1.2670, 1.2710, 1.2742, 1.2775, 1.2885

Alternative scenario

TIMEFRAME: WEEKLY

RECOMMENDATION: BUY STOP

ENTRY POINT: 1.2715

TAKE PROFIT: 1.2775, 1.2885

STOP LOSS: 1.2675

KEY LEVELS: 1.2590, 1.2605, 1.2670, 1.2710, 1.2742, 1.2775, 1.2885.


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