USDCAD (4H) Technical Analysis Long setupPair: USD/CAD
Timeframe: 4H
Bias: Bullish
Structure: Falling Wedge Breakout → Bullish Continuation
Current Price: ~1.3937
📐 Chart Breakdown
1. Falling Wedge Formation (Bullish Reversal Pattern)
Price was consolidating inside a falling wedge, typically a bullish reversal structure.
Breakout to the upside confirms buyer strength after a period of compression.
2. Breakout + Retest Setup
Clean breakout above the wedge has occurred.
Price is currently forming a small bullish flag (or consolidation), likely preparing for a retest of the breakout zone around 1.3856 before continuation.
3. Clean Bullish Imbalance Above
The large bullish candle created imbalance above, increasing the probability of a liquidity-driven move up.
4. Higher Timeframe Target Zones (Key Supply)
1st Target: 1.4150 (previous support turned resistance)
2nd Target: 1.4280 (major horizontal resistance)
Final Target: 1.4520 (multi-week supply zone)
🧾 Trade Plan – Long Setup
Entry Zone Stop Loss Take Profit Targets Risk:Reward
1.3860–1.3885 (retest of wedge) 1.3750 (below last swing low) 1.4150, 1.4280, 1.4520 1:3 to 1:5+
✅ Confluences Supporting the Long Bias
Confluence Details
✅ Falling Wedge Pattern Price broke out from bullish wedge.
✅ Retest Setup Pullback expected before continuation.
✅ Bullish Market Structure Higher highs forming post-breakout.
✅ Clean Liquidity Above Fewer obstacles on the way to major targets.
✅ Strong Demand Zone Below Buyers stepped in around 1.3750–1.3850.
🚫 Invalidation
If price breaks below 1.3750, bullish setup fails.
Close below wedge base may invite deeper bearish pressure.
📊 Trade Management Tips
Enter on bullish candle at retest zone.
Scale out profits at 1.4150, then 1.4280, let partials run to 1.4520.
Use trailing SL after price hits first TP for a risk-free runner.
