USD/CAD: example of evident Stop Loss hunting. Next step?

Last Friday, we published an article scrutinising Stop Loss hunting and everything about it. If we take a look at the USD/CAD chart, we can clearly observe that the price spiked below the previous Low 1.243 and went back up immediately. Due to the fact that market participants tend to set their Stop Losses around this particular level, the liquidation phase took place before continuing movements in the destined direction. If the price manages to close above the 1.246 area of crucial support, we will be looking for BUY positions and aiming for the zone of resistance identified on the graph that lines up with 0.618 Fibonacci retracement level.

All in all, our bias remains the same and we will be patient before entering positions.