#USDCAD: Big Bullish Move Has Started! Get Ready

🔺The directional bias for USDCAD is fully bullish. The current decline from 1.42595 is viewed as a corrective retracement into a higher-timeframe buying zone, rather than the beginning of a sustained bearish trend.

🔺Price is trading near 1.38365 and gradually approaching the planned entry region at 1.37321. This area sits at the upper boundary of the broader 1.35363–1.37321 demand zone, where buyers may begin rebuilding positions for the next expansion higher.

Bullish Market Structure

🔺USDCAD previously produced a strong rally from its discounted price region, confirming that demand remains present at lower levels. That bullish expansion carried price into the 1.42595 premium zone, where profit-taking and selling pressure created the current pullback.

🔺Although price has formed short-term lower highs beneath the descending trend line, this movement is delivering the market back toward a more favourable buying location. The correction therefore supports the bullish setup by improving the potential risk-to-reward ratio.

Preferred Buying Area

🔺The primary entry level is positioned around 1.37321, with the complete buying zone extending down to 1.35363.

Traders should monitor this region for evidence that the correction is ending, including:

• Strong rejection candles or long lower wicks
• A bullish engulfing formation
• A lower-timeframe Change of Character (CHoCH)
• A bullish Break of Structure (BOS)
• A break and successful retest of the descending trend line

🔺These confirmations would indicate that buyers are returning and that bullish momentum is beginning to rebuild.

Bullish Targets

If price responds positively from the buying zone, the following upside objectives become relevant:

1. 1.4000 — initial psychological resistance and a possible partial-profit area
2. 1.42595 — first main target and previous premium selling zone
3. 1.48030 — second target and the broader buy-side liquidity objective

🔺The first major challenge will be 1.42595. Price may consolidate or retrace from this level before continuing toward 1.48030, as illustrated by the projected path on the chart.

🔺A decisive breakout and successful retest of 1.42595 would strengthen the case for the second bullish expansion.

Invalidation

🔺The bullish setup remains valid while the 1.35363–1.37321 buying zone is respected.

🔺A sustained 3-day close below 1.35363 would invalidate the planned entry structure. This level should therefore be treated as the technical exit point rather than an area for repeatedly adding to a losing position.

🔺A temporary liquidity wick below the zone may occur, so confirmation from the candle close is more meaningful than an intraday price spike.

LIKE AND COMMENT❤️

THE SETUPSFX_ TEAM❤️🇬🇧