If you think the trend is your friend, then you might like this potential retracement play with USD/CAD. There’s a rising trend line connecting the lows of the price on the 4-hour chart, so I used my handy-dandy Fibonacci retracement tool to pinpoint potential entry levels.
The 38.2% Fibonacci level is just a few pips below the 1.0200 major psychological support and it’s right in line with the trend line. At the same time, a bullish divergence seems to be forming, but I’d wait for stochastic to cross upwards before making any decisions.
Do you think this uptrend will continue? Or will we see a breakdown this time? I’d love to hear your thoughts before I decide on a trade this week!