The Canadian dollar (USD/CAD) has been bouncing for 3 consecutive days from the low of 1.2451. Around this area of 1.2451, a triple bottom pattern was formed. In our previous analysis, we pointed out the upside potential that existed. Now the price is facing resistance from the downtrend channel, formed on December 8.

A technical correction is expected below 4/8 Murray and below downtrend channel in the next few hours, with targets towards 200 EMA located at 1.2616 and 3/8 Murray located at 1.2574.

Conversely, a sharp break and consolidation above 1.2695, 4/8 Murray zone, will be an opportunity to buy with targets at 1.2817 (5/8) and 1.2939 (6/8).

The eagle indicator is touching the top of the downtrend channel and a technical correction is likely in the coming days.

Support and Resistance Levels for January 24 - 25, 2022

Resistance (3) 1.2817

Resistance (2) 1.2760

Resistance (1) 1.2695

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Support (1) 1.2623

Support (2) 1.2573

Support (3) 1.2536

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Scenario

Timeframe H4

Recommendation: Sell below

Entry Point 1.2677

Take Profit 1.2616 (200 EMA) 1.2573 (3/8)

Stop Loss 1.2710

Murray Levels 1.2939 (6/8) 1.2817 (5/8) 1.2695 (4/8) 1.2573 (3/8)

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