USD/CAD Reversal Zone – Break of Structure Anticipated

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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.

Penafian

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