USDCAD 4H Chart Analysis
1. Market Structure
The chart shows a bearish market structure, where price has broken a key trendline support.
The price previously made higher highs and higher lows, but recently failed to continue upward and broke below the ascending trendline.
This confirms a potential trend reversal to the downside.
2. Key Levels
Broken Support Zone (~1.4350 - 1.4400): This level previously acted as support, but price has now dropped below it.
Current Resistance (~1.4300 - 1.4320): Price attempted a pullback to this zone, but it is now acting as resistance.
Target Zone (~1.4165 - 1.4180): Marked as a potential take-profit area for short positions.
3. Bearish Setup Confirmation
The chart shows a short position setup, with:
Entry near the pullback area (~1.4300)
Stop-loss above the resistance zone (~1.4350 - 1.4400)
Take-profit near 1.4165 (previous key support)
The trade setup suggests a Risk-to-Reward Ratio (RRR) > 2:1, making it a favorable setup.
4. Trading Strategy
If Price Retests Resistance (1.4300 - 1.4320) and Rejects → Short (Sell) Entry
If Price Breaks Above 1.4350 → Invalidates Bearish Setup
If Price Drops Below 1.4260 → Bearish Momentum Confirmed
5. Additional Confirmation Factors
EMA 50: Price is below the 50 EMA, which supports the bearish outlook.
Break of Trendline: Strong signal for downside continuation.
Conclusion
Primary Bias: Bearish
Entry Zone: Near 1.4300 - 1.4320 resistance
Stop Loss: Above 1.4350
Take Profit: Around 1.4165
Trade Confirmation: Look for rejection candles at resistance.
The chart shows a bearish market structure, where price has broken a key trendline support.
The price previously made higher highs and higher lows, but recently failed to continue upward and broke below the ascending trendline.
This confirms a potential trend reversal to the downside.
2. Key Levels
Broken Support Zone (~1.4350 - 1.4400): This level previously acted as support, but price has now dropped below it.
Current Resistance (~1.4300 - 1.4320): Price attempted a pullback to this zone, but it is now acting as resistance.
Target Zone (~1.4165 - 1.4180): Marked as a potential take-profit area for short positions.
3. Bearish Setup Confirmation
The chart shows a short position setup, with:
Entry near the pullback area (~1.4300)
Stop-loss above the resistance zone (~1.4350 - 1.4400)
Take-profit near 1.4165 (previous key support)
The trade setup suggests a Risk-to-Reward Ratio (RRR) > 2:1, making it a favorable setup.
4. Trading Strategy
If Price Retests Resistance (1.4300 - 1.4320) and Rejects → Short (Sell) Entry
If Price Breaks Above 1.4350 → Invalidates Bearish Setup
If Price Drops Below 1.4260 → Bearish Momentum Confirmed
5. Additional Confirmation Factors
EMA 50: Price is below the 50 EMA, which supports the bearish outlook.
Break of Trendline: Strong signal for downside continuation.
Conclusion
Primary Bias: Bearish
Entry Zone: Near 1.4300 - 1.4320 resistance
Stop Loss: Above 1.4350
Take Profit: Around 1.4165
Trade Confirmation: Look for rejection candles at resistance.
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.