USDCAD MARKET ANALYSIS

 Good morning traders, it's the first week of a new month that brings with it more opportunities in the markets and I hope you're all ready to tackle them. This week is filled with high impact news like the FOMC release on Wednesday night and NFP on Friday so kindly trade cautiously. Into the markets today, I'm looking at USDCAD where price dropped into a key H1 & H4 demand zone at 1.35543 & 1.35188 which is a previously broken supply and also origin of the rally to the H1 & H4 supply zone at 1.36735 & 1.36458. Price filled the H1 & H4 range from the key H1 & H4 demand zone to the H1 & H4 supply zone and back to the key H1 & H4 demand zone. Price dropped into demand and failed to take out the previous lows and demand as well and formed candle closes inside demand. Price formed a rejection wick with candle close inside demand confirming the validity of the zone. Took buy positions during London session at 1.35331 with SL at 1.35100. Setup taken is a drop base rally, a reversal setup and my target is at the next H1 & H4 supply zone at 1.36735 & 1.36458.

Price formed a H1 bullish engulfing candle followed by a strong bullish push away from demand in 3 strong H1 bullish candles to 1.35720 with candle close above demand confirming the bullish bias. Price gained more bullish momentum and rallied to the 1st H1 high at 1.35800. Price retraced to 1.35680 then gained more bullish momentum during NY session, taking out the H1 high and forming a higher high at 1.36000 confirming a shift in market structure to bullish. Price rallied continued forming higher highs rallying 95 pips to 1.36230 and still showing a potential push to the H1 & H4 supply zone.