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.