USD/CAD –Trend Reversal Structure Developing from Fake-Breakdown
The 2-hour chart on USD/CAD reveals a compelling bullish reversal setup following a fake breakdown and a clean structural breakout from a descending channel
🔍 Key Technical Elements
Price initially broke below the descending channel, forming a fake breakdown but quickly reclaimed ground—often a sign of smart money accumulation.
This move was followed by a breakout above the channel, initiating a trend reversal
The current pullback appears to be forming a bullish continuation pattern likely a higher low or inverse head and shoulders structure above the 1.3680–1.3700 support zone
📌 Key Levels to Watch:
Support: 1.3680–1.3700 (demand area and neckline zone)
POI / Mid-resistance 1.3829 – Potential short-term target
Resistance: 1.3915 – Long-term supply zone
📈 Scenario Outlook:
If the price holds above support and confirms the higher low, we could see continuation toward 1.3829 with potential extension to 1.3915 in the coming sessions
A breakdown below the current support zone would invalidate the bullish bias and warrant reassessment.
🧠 Technical Insight
This setup highlights a shift from bearish trend to bullish structure with early signs of trend reversal through liquidity manipulationand a reclaim of key levels
Summary:
USD/CAD is showing a potential bullish reversal after a fake breakdown and structural breakout. If current support holds, the path toward higher levels remains open, with 1.3829 and 1.3915 as primary upside targets
Your likes and comments are incredibly motivating and will encourage me to share more analysis with you!
Best Regards TrendLinford!
🔍 Key Technical Elements
Price initially broke below the descending channel, forming a fake breakdown but quickly reclaimed ground—often a sign of smart money accumulation.
This move was followed by a breakout above the channel, initiating a trend reversal
The current pullback appears to be forming a bullish continuation pattern likely a higher low or inverse head and shoulders structure above the 1.3680–1.3700 support zone
📌 Key Levels to Watch:
Support: 1.3680–1.3700 (demand area and neckline zone)
POI / Mid-resistance 1.3829 – Potential short-term target
Resistance: 1.3915 – Long-term supply zone
📈 Scenario Outlook:
If the price holds above support and confirms the higher low, we could see continuation toward 1.3829 with potential extension to 1.3915 in the coming sessions
A breakdown below the current support zone would invalidate the bullish bias and warrant reassessment.
🧠 Technical Insight
This setup highlights a shift from bearish trend to bullish structure with early signs of trend reversal through liquidity manipulationand a reclaim of key levels
Summary:
USD/CAD is showing a potential bullish reversal after a fake breakdown and structural breakout. If current support holds, the path toward higher levels remains open, with 1.3829 and 1.3915 as primary upside targets
Your likes and comments are incredibly motivating and will encourage me to share more analysis with you!
Best Regards TrendLinford!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🚀 Tap to join – no copy needed!
Get FREE Forex signals with a 1:3 to 1:5 Risk-Reward Ratio
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👇 join telegram channels now
#1: t.me/Trendlinford
Get FREE Forex signals with a 1:3 to 1:5 Risk-Reward Ratio
Trade smarter with Linford 🤴
👇 join telegram channels now
#1: t.me/Trendlinford
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.