USDCAD 4H — Bullish Continuation Setup US Dollar/Canadian DollarFX:USDCADFrankAgboAfter weeks of sustained bearish pressure, USDCAD is finally showing signs of a structural reversal on the 4H timeframe. Price has successfully broken above the descending trendline that controlled the market since early May, signaling weakening bearish momentum and the potential start of a bullish continuation move. ### Key Technical Observations ✅ Clean breakout from the falling trendline ✅ Higher lows forming after the breakout ✅ Bullish momentum building above 1.3670 support ✅ Price approaching major resistance around 1.3860–1.3870 The highlighted resistance zone near **1.38635** is a critical level to watch. This area previously acted as strong supply and could attract profit-taking or short-term rejection. However, if bulls maintain momentum and volume increases, a breakout above this zone could open the path toward higher targets. ### Trade Idea **Bias:** Bullish **Entry Zone:** 1.3670 – 1.3710 **Target:** 1.3863 **Stop Loss:** 1.3550 ### Risk Management The setup offers a favorable risk-to-reward structure, with buyers defending recent higher lows. Traders should still remain cautious around high-impact USD and CAD news events, as volatility can rapidly change market conditions. ### What Confirms the Move? 📌 Sustained closes above the broken trendline 📌 Bullish candles holding above 1.3670 📌 Increasing bullish momentum toward resistance ### Invalidation A move back below **1.3550** would weaken the bullish structure and suggest the breakout may have been false. **Overall Outlook:** As long as price remains above the breakout structure, bulls appear to have short-term control. Momentum currently favors a continuation toward the 1.3860 resistance region. #USDCAD #Forex #TradingView #PriceAction #ForexTrading #TechnicalAnalysis #USD #CAD #BreakoutTrading #SwingTrading