CADUSD (4H Chart)


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Analysis :



Market Structure

  • Trend: Short-term bearish with a descending channel.
  • Current Trend: Price bounced off the Bullish Order Block (Demand Zone) around 0.6870 - 0.6900. A potential breakout of the descending channel could shift the structure bullish.
  • Bias: Bullish if price holds above 0.6900; bearish if rejection occurs below 0.6980.

Order Blocks

  • Bullish Order Block (Demand Zone)
    Zone:0.6870 - 0.6900 Strong previous reaction suggests institutional buying interest. If price holds above, expect a potential bullish move.
  • Bearish Order Block (Supply Zone)
    Zone:0.7050 - 0.7080 If price reaches here, Smart Money may take profits or enter shorts.
  • Key Play: Buy at the demand zone OR sell at the supply zone rejection.

Trading Plan

  • Bullish Setup (Best Trade)
  • Entry: Buy on a breakout above the descending channel (above 0.6950).
  • bTarget 1: 0.6980 (First resistance).
  • Target 2: 0.7050 - 0.7080 (Supply Zone).
  • Stop-Loss: Below 0.6880.
  • Risk-Reward Ratio: 1:2
  • Bearish Setup (Only If Rejection at 0.7050 - 0.7080)
  • Entry: Short if price rejects at 0.7050 - 0.7080.
  • Target 1: 0.6980 (First support).
  • Target 2: 0.6900 (Demand Zone).
  • Stop-Loss: Above 0.7100.
  • Risk-Reward Ratio: 1:2.

Happy Trading!



Note: This analysis is for educational and informational purposes only and should not be considered financial advice. Trading in Forex, commodities, and indices involves a high level of risk and may not be suitable for all investors. Before engaging in live trading, ensure you have a clear risk management strategy and consult a licensed financial advisor if necessary. You are responsible for your trading decisions.