USDCAD Analysis Dec 27, 2020 TOP PAIR

On the monthly timeframe we can see that we rejected a key level of support at 1.27650. Last week closed with an inverted hammer candle which tells me when could have more signs of bullish reversal. On the daily timeframe we are still in a downtrend but based on the higher timeframe formations I will look to see if the H4 timeframe has bullish structure. On the H4 timeframe I can clearly see that price is in an uptrend and on this timeframe is where I will draw my fib levels. I have a confluence level at 38.2% level and I will wait for the lower timeframe to break structure before entering in a buy.