USD/CAD has been in a steady downtrend, but price action is now testing a key demand zone between 1.3780–1.3830, which has previously acted as a strong support area. The descending trendline is being tested, and bullish rejection from this zone suggests potential for a structural shift.
If the pair breaks and retests the 1.3900–1.3980 supply zone (highlighted in purple), it could confirm a trend reversal. The next key upside targets lie at 1.4100, 1.4200, and potentially 1.4400, providing an excellent swing trade opportunity.
Trade Plan:
Watch for: Bullish rejection + trendline break
Confirmation: Retest of 1.3900–1.3980 zone
Target Levels: 1.4100, 1.4200, 1.4400
Invalidation: Break below 1.3780 zone
Market Outlook:
Bullish reversal scenario is in play as price tests key support and downward pressure begins to weaken. Wait for confirmation before entering a long position. Ideal for swing traders looking for medium-term setups.
If the pair breaks and retests the 1.3900–1.3980 supply zone (highlighted in purple), it could confirm a trend reversal. The next key upside targets lie at 1.4100, 1.4200, and potentially 1.4400, providing an excellent swing trade opportunity.
Trade Plan:
Watch for: Bullish rejection + trendline break
Confirmation: Retest of 1.3900–1.3980 zone
Target Levels: 1.4100, 1.4200, 1.4400
Invalidation: Break below 1.3780 zone
Market Outlook:
Bullish reversal scenario is in play as price tests key support and downward pressure begins to weaken. Wait for confirmation before entering a long position. Ideal for swing traders looking for medium-term setups.
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.