USDCAD Analysis, April 28, 2025
On this USDCAD chart with M15 timeframe, the general trend shows a bearish tendency. This can be seen from the market structure that forms a pattern of lower highs and lower lows. The price is also below the Moving Average line. In terms of price action, there is strong selling pressure indicated by a long bearish candle that breaks minor support and penetrates the Moving Average downwards. After the breakout, the price tried to pull back to the newly formed supply area, namely the green area marked on the chart. This is a natural market reaction to retest the level that has been penetrated, before continuing to decline.
The recommended strategy is to sell on rally. Wait for the price to rise into the green supply area (around 1.3855 - 1.3865), then look for bearish confirmation such as bearish engulfing or pin bar for sell entry. Stop loss can be placed a few pips above the supply area and Moving Average, around 1.3875 - 1.3880.