FXNOVA Strategy – USDCAD Rejection from Weak High
Analysis
USDCAD on the 1-hour timeframe shows a strong bullish leg followed by a clear exhaustion at the top, forming a weak high near 1.3900. The move into this level appears liquidity-driven, with price failing to continue higher and starting to stall.
The structure is still technically bullish, but the lack of continuation and the presence of a weak high suggest that the market is vulnerable to a short-term pullback. This is a classic distribution phase after expansion, where smart money may start unloading positions.
Below current price, a clean imbalance / demand zone around 1.3830–1.3850 acts as the first magnet for price. A retracement into this zone is highly probable before any continuation decision.
As long as price stays below 1.3900, the probability favors a corrective move downward.
Trade Setup
Enter: Sell near 1.3880–1.3900
Stop-Loss (SL): 1.3940
Target A: 1.3850
Target B: 1.3800