USDCAD UPDATE ANALYSIS

 Hello traders, USDCAD market opened with price at at 1.28937 after which price rallied 23 pips to 1.29155 then dropped again back to demand during London session. I'm still holding my positions from last week as I expect the market to drop lower. Price has dropped 130 pips from my entries to current price. Price has formed candle close inside demand but still showing bearish potential on higher timeframes. However, price hasn't broken demand yet.

I moved my SL in profit at 1.29115 and took one anticipatory buy entry during London session at 1.28772 with SL at 1.28500. Setup taken is a drop base rally, a reversal setup. Price formed candle close inside demand followed by a wick rejection, a strong bullish engulfing candle on H1 & a series of bullish candles out of demand hence hitting SL in profit at 88 pips. Price rallied to 1.29120 then dropped back into demand in 2 strong bearish candles that formed candle close inside demand again. Price has respected demand as it still holds without being broken.

Price has eventually broken demand as I had previously expected confirming a continuation of the downtrend. I anticipate a retest of demand as new supply before a continuation of the drop where I can take re-entry positions to continue with the drop.