USDCAD Bullish Reversal Setup from Demand V2USD/CADOANDA:USDCADskhumbuzo_mdakaneUSDCAD has reached a key demand zone around 1.3200, where buyers are beginning to show interest after an extended corrective decline from the recent highs. I had shared the same bias but was stopped out, I'm still biased long. Price is currently trading at a high-confluence area that combines historical support, and a favourable risk-to-reward buying opportunity. The recent selloff appears corrective rather than impulsive, suggesting that the market may be preparing for a bullish recovery. Technical Analysis The decline from the 1.4248 high has formed a controlled pullback into demand. Despite the short-term bearish structure, price has now entered an area where institutional buying previously occurred. Key observations: Price is holding above the major support zone near 1.3200. The selloff is losing momentum as it approaches demand. A confirmation will come when we get an inside bar, doji or engulfing . Risk-to-reward favours upside continuation from current levels. Bullish Scenario If buyers continue defending the demand zone: Trendline resistance is broken. Price establishes higher lows on lower timeframes. Momentum targets the next resistance levels at: Target 1.4248 (major swing high) Potential extension beyond if USD strength returns. COT Perspective The latest positioning data suggests market participants may be approaching extremes, often preceding corrections and reversals. With price trading at a significant support area, any shift in sentiment could fuel a stronger move higher. Combined with the current technical structure, this supports watching for upside confirmation rather than chasing downside momentum into support. Trade Setup Buy Zone: 1.3200 - 1.3690 Stop Loss: Below demand and recent swing low Target 1: 1.4248 Target 2: Open Risk-to-Reward: Approximately 1:3 or better Conclusion USDCAD is sitting at a critical demand zone where buyers have an opportunity to regain control. While confirmation is still required, the current structure favors a bullish reversal scenario with attractive upside potential toward 1.4120 and beyond. As always, wait for price action confirmation and manage risk appropriately. Not financial advice. #USDCAD #Forex #Bullish #PriceAction #TradingView #SupplyAndDemand #ForexTrading #SmartMoneyConcepts #TechnicalAnalysis #USDCADAnalysis