USDCAD MARKET ANALYSIS

 Good evening traders, it's a cool Tuesday NY session where I am watching the markets for opportunities in various pairs and I've come across USDCAD for a potential opportunity. Price dropped into a major H4 & daily demand zone at 1.36600 & 1.36155 which was the origin of the previous rally to the major H4 & daily supply zone at 1.38820 & 1.38190. Price has filled the major H4 & daily range from the major H4 & daily demand zone to the major H4 & daily supply zone and back to the major H4 & daily supply zone. Price dropped into the major H4 & daily demand zone and formed a rejection wick with candle closes inside demand followed by a slight bullish push on H1 & H4. Took buy positions during NY session at 1.36230 with SL at 1.35870. Setup taken is a drop base rally, a reversal setup and my target is at 1.37340.

Price formed candle closes inside demand followed by a slight bullish push to the 1st H1 high at 1.36400 and failed to break above the high. Price then formed rejection wicks followed by a strong drop back into the demand zone. Price gained more bearish momentum and dropped lower, breaking below the demand zone and forming lower lows at 1.35800 invalidating my setup hence hitting my SL and taking out my positions. Price confirmed a continuation of the prevailing bearish trend after forming lower lows on H4 and the daily timeframe followed by a retest of the broken demand as new supply before a continuation of the drop lower.