USDCAD MARKET ANALYSIS

 Good evening traders, I hope you're all doing well and are ready to tackle the new week in the markets. Into the charts this week, I'm looking at USDCAD where market opened this week at the major daily chart supply zone at 1.38823 & 1.38286 which is the origin of the previous drop to the major daily demand zone at 1.33053 & 1.32509. Price gapped down after market open confirming a strong bearish reversal and dropped 113 pips to 1.37165, taking out the 1st H1 & H4 low at 1.37500 by a strong H1 bearish candle confirming a shift in market structure to bearish. Price retraced to retest the broken H1 & H4 low that formed a BOS at 1.37450 & 1.37750 before a potential continuation of the drop. Took sell positions during London session at 1.38487 with SL at 1.37750. Setup taken is a drop base drop, a continuation setup and my target is at the next H1 & H4 demand zone at 1.35248 & 1.34920. 

Price rallied back to 1.37900 during London session taking out my 1st entries and hitting my SL before the actual drop as was my bias. Took sell re-entry positions during NY session at 1.37849 with SL at 1.38120. Price formed strong rejection wicks followed by a drop in 3 strong H1 bearish candles during NY session dropping 100 pips to 1.36850, taking out the previous H1 lower low at 1.37165 and forming another lower low on H1 confirming the shift in market structure to bearish. I anticipate a retest at 1.37480 before a continuation of the drop to the next H4 demand zone at 1.35248 & 1.34920.

Price dropped to 1.36860 then retraced during Asian session back to the H1 BOS at 1.37480 for a retest before a continuation of the drop. Price tapped 1.37480 activating my pending scale-in sell limit order, formed rejection wicks with candle closes below supply followed by a bearish push to 1.37130. Price retraced to retest the H1 BOS again during London session at 1.37480 and formed a strong H1 rejection wick with candle close below supply followed by a H1 bearish engulfing candle and a bearish push lower. Price gained stronger bearish momentum after the CPI news release into NY session pushing price lower dropping 120 pips and forming a new lower low at 1.36580 showing a potential continuation of the drop.