USDCAD MARKET ANALYSIS

 Good evening fellow chartists, here's another setup I am looking out for on USDCAD for a potential bullish reversal. Price dropped back to the major H4 & daily demand zone at 1.34716 & 1.34360 which was the origin of the previous major rally to the major H4 & daily supply zone. Price filled the H1 & H4 range from the major H4 & daily demand zone to the H1 & H4 supply zone and back to the major H4 & daily demand zone. Price missed my pending buy limit order at 1.34700 and instead reversed from 1.34760. Took buy positions during NY session at 1.34850 with SL at 1.34640. Setup taken is a drop base rally, a reversal setup and my target is at 1.35700.

Price formed multiple candle closes above demand followed by a rally by a constant push away from demand. Price rallied 65 pips to the 1st H4 high at 1.35380 confirming a shift in market structure to bullish. Price gained more momentum taking out the previous H4 high and forming higher highs showing a potential continuation of the prevailing bullish trend. Price rallied 110 pips to the target at 1.35800 and closed the week at 1.35766. I anticipate a potential continuation of the rally higher to the next major H4 & daily supply zone at 1.36600 & 1.36200 which was the origin of the previous drop to the H4 & daily demand zone.