USDCAD H1: Bearish outlook seen, further downside below 1.38200

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On the H1 time frame, we are seeing bearish market structure formed with prices approaching the resistance zone at 1.38200, in line with the 78.6% Fibonacci retracement and 100% Fibonacci extension levels. A pullback to the 1.38200 resistance zone presents an opportunity to play the drop to the support target at 1.36800. This support zone lines up with the 61.8% Fibonacci retracement and is a zone that prices interacted with multiple times. Stochastic is approaching resistance at 96.35 as well where we could see a reversal below this level, in line with prices.

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