USD/CAD Testing Trendline Support Before Continuing Bullish

On the USD/CAD 5D time frame chart, the price is currently experiencing a significant decline after reaching the resistance area around 1.46721. This pullback remains within the context of a long-term uptrend, as indicated by the ascending trendline, which has repeatedly acted as support since 2021.

The primary scenario in this analysis suggests that the price could retest the support area around the ascending trendline and the previous breakout zone (blue area), located in the 1.38 - 1.39 range. If the price finds strong support in this area and shows signs of reversal, a buy opportunity can be considered, with an upside target back to the 1.46721 resistance level.

In this analysis process, several confirmations should be observed before making an entry decision:

• Price Reaction at Trendline Support – If the price shows a strong bounce at this level, the bullish scenario remains valid.
  
• Reversal Candlestick Confirmation – Patterns like bullish engulfing or pin bars can serve as reliable entry signals.
  

On the other hand, if the price breaks below the trendline significantly, this bullish scenario may become invalid, and USD/CAD could enter a deeper correction phase. Therefore, risk management is crucial, with an ideal stop loss placed below the trendline support.