possible scenario for USDCAD

23 May 2021

In the daily TF we can see that price has been falling strongly but has now reached a daily demand area at around 1.20000 where price could possibly react from. In the 4hr TF we can see how price failed to break structure below the previous low meaning it failed to make a new lower low and has started to form a possible Double Bottom (reversal pattern). In order to get more confirmation for the change of direction we should first wait for a break above the previous lower high at around 1.21490 and a pullback (retest) on around that same area.