USDCAD Trade Idea (1H Chart Analysis)**USDCAD Trade Idea (1H Chart Analysis)**
**Market Structure:**
- The price is in a **downtrend** on the 1H chart, with lower highs and lower lows forming.
- It is currently testing a **key support level** around **1.4350**.
- The **50 EMA (black line) is above the price**, confirming bearish momentum.
- The recent candles show **decreasing volume**, indicating possible consolidation before the next move.
**Trade Plan**
**Scenario 1: Bearish Breakdown (Sell Trade)**
📉 **Entry:** Below **1.4350**, after a strong bearish candle closes.
🎯 **Target 1:** **1.4320** (previous minor support)
🎯 **Target 2:** **1.4280** (stronger support zone)
🛑 **Stop Loss:** **1.4375** (above recent lower high)
📊 **Risk-to-Reward Ratio:** 1:2 or better
**Confirmation:** If price breaks 1.4350 with strong volume, it signals continuation of the downtrend.
**Scenario 2: Bullish Reversal (Buy Trade)**
📈 **Entry:** If price **bounces from 1.4350** and forms a strong bullish engulfing candle.
🎯 **Target 1:** **1.4395** (previous resistance)
🎯 **Target 2:** **1.4415-1.4420** (major resistance zone)
🛑 **Stop Loss:** **1.4335** (below recent low)
📊 **Risk-to-Reward Ratio:** 1:2
**Confirmation:** A strong rejection from 1.4350 with bullish volume indicates potential reversal.
**Final Thoughts**
- **Bias:** Bearish unless we see a clear reversal signal at 1.4350.
- **Watch for a breakout or bounce at key levels before entering.**
- **Always use risk management** – never risk more than 1-2% per trade!
