USD/CAD has been on a bearish trend for the past couple of weeks. The most recent action last Friday indicates a sharp dip in the prices. Using, Fibonacci retracement analysis, we could see how a profitable opportunity is highly plausible from this chart.
The price is highly likely to bounce up to the 38.2%. So, conservative traders can have that as their profit target.
On the other hand, more aggressive traders may target the 50% Fib mark for a larger profit opportunity.
While Fib retracement analysis is a solid technical analysis tool, it certainly won't hurt to pair this analysis up with another indicator, perhaps support/resistance analysis in order to determine the best stop loss mark and entry price targets.
The price is highly likely to bounce up to the 38.2%. So, conservative traders can have that as their profit target.
On the other hand, more aggressive traders may target the 50% Fib mark for a larger profit opportunity.
While Fib retracement analysis is a solid technical analysis tool, it certainly won't hurt to pair this analysis up with another indicator, perhaps support/resistance analysis in order to determine the best stop loss mark and entry price targets.