This is a weekly timeframe bullish setup on USD/CAD, focusing on a high-probability buy opportunity based on key support structure and RSI dynamics.
🧠 Technical Outlook:
Price has strongly rejected a major historical support zone around 1.37781 – 1.38800, highlighted by the green horizontal line.
This level has acted as strong support multiple times in the past, making it a key demand zone for potential reversal.
After a strong bearish leg, the current price action suggests exhaustion in selling pressure, indicating a likely bounce from this level.
💹 Why Long?
Price is sitting right above the support zone, with buyers stepping in around the 1.38800 level.
This area aligns with previous structure and is a likely zone where institutional buyers may accumulate.
📊 RSI Analysis:
RSI (14) is at 39.99, entering the oversold territory and showing early signs of potential reversal.
Although momentum is still bearish, this is where contrarian entries often occur—anticipating a bounce back toward midline (50+) or higher.
✅ Trade Setup Details:
Entry: Around 1.38800 zone (current support zone)
Stop Loss: Below 1.37781 (to protect against deeper correction)
Take Profit: Targeting the 1.42000 – 1.43000 resistance zone
Risk-Reward Ratio: Around 1:2.5 or better, offering a solid return potential if price rebounds
⚠️ Trade Management Tips:
Watch for bullish confirmation candles on the daily or H4 for added confluence.
Monitor USD and CAD fundamentals for short-term volatility (e.g., interest rate decisions, oil prices).
Secure partial profits near 1.41000 and trail your stop.
🧠 Technical Outlook:
Price has strongly rejected a major historical support zone around 1.37781 – 1.38800, highlighted by the green horizontal line.
This level has acted as strong support multiple times in the past, making it a key demand zone for potential reversal.
After a strong bearish leg, the current price action suggests exhaustion in selling pressure, indicating a likely bounce from this level.
💹 Why Long?
Price is sitting right above the support zone, with buyers stepping in around the 1.38800 level.
This area aligns with previous structure and is a likely zone where institutional buyers may accumulate.
📊 RSI Analysis:
RSI (14) is at 39.99, entering the oversold territory and showing early signs of potential reversal.
Although momentum is still bearish, this is where contrarian entries often occur—anticipating a bounce back toward midline (50+) or higher.
✅ Trade Setup Details:
Entry: Around 1.38800 zone (current support zone)
Stop Loss: Below 1.37781 (to protect against deeper correction)
Take Profit: Targeting the 1.42000 – 1.43000 resistance zone
Risk-Reward Ratio: Around 1:2.5 or better, offering a solid return potential if price rebounds
⚠️ Trade Management Tips:
Watch for bullish confirmation candles on the daily or H4 for added confluence.
Monitor USD and CAD fundamentals for short-term volatility (e.g., interest rate decisions, oil prices).
Secure partial profits near 1.41000 and trail your stop.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.