USDCAD has rallied strongly into a higher-timeframe supply zone, while simultaneously reaching the upper boundary of the ascending channel.
Price has now shown a clear bearish reaction from this area, creating a potential downside scenario.
Why this setup is interesting:
1️⃣ Daily Supply Zone
Price has entered a previously identified supply area around 1.4250–1.4300, where sellers may become active.
2️⃣ Channel Resistance
The supply zone aligns with the upper boundary of the ascending channel, adding confluence to the resistance area.
2️⃣ Channel Resistance
The supply zone aligns with the upper boundary of the ascending channel, adding confluence to the resistance area.
🎯 Key Levels
Entry / Reaction Area: 1.4220–1.4270
TP 1: 1.40047
Final TP: 1.37473
Invalidation: 1.43707
The bearish scenario remains valid while price respects the marked supply zone and stays below the invalidation level.
The first objective is the 1.40047 support area. If bearish momentum continues and that level breaks, the next major objective is around 1.37473, near the lower channel area.
Key idea: Supply + Channel Resistance + Bearish Rejection = Potential Downside Continuation
Price has now shown a clear bearish reaction from this area, creating a potential downside scenario.
Why this setup is interesting:
1️⃣ Daily Supply Zone
Price has entered a previously identified supply area around 1.4250–1.4300, where sellers may become active.
2️⃣ Channel Resistance
The supply zone aligns with the upper boundary of the ascending channel, adding confluence to the resistance area.
2️⃣ Channel Resistance
The supply zone aligns with the upper boundary of the ascending channel, adding confluence to the resistance area.
🎯 Key Levels
Entry / Reaction Area: 1.4220–1.4270
TP 1: 1.40047
Final TP: 1.37473
Invalidation: 1.43707
The bearish scenario remains valid while price respects the marked supply zone and stays below the invalidation level.
The first objective is the 1.40047 support area. If bearish momentum continues and that level breaks, the next major objective is around 1.37473, near the lower channel area.
Key idea: Supply + Channel Resistance + Bearish Rejection = Potential Downside Continuation
Trade active
Trade Active...Trade closed: target reached
Closed 50% near TP1 & Remaining for the Entry Point
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.