Here on the H4 chart on USDCAD we know that the Fibonacci Retracement tool has key levels at the 0.618 and will most times hit that level then drop (when looking for a downtrend), we also can see that at a previous time in the market it did react with the 0.618 levels and then fell to lower lows and lower highs. Now another tool we used on this analysis is the Trend Based Fib Extension, we use this tool to see where we will be taking our profit now the way we use this is we go from the lower low to the lower high (which will be at the 0.618 level) then we find the 1.272 level and set out take profit there. Also the way i set my stop loss is 0.25% above the 0.786 level on the Fibonacci Retracement incase you were wondering.