USD /CAD) bearish reversal analysis Read The caption

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SMC trading point update




Technical analysis of USD/CAD pair on the 2-hour timeframe, suggesting that the price is likely to drop toward the support zone. Here's the detailed idea behind the analysis:


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Chart Breakdown (2H – USD/CAD)

1. Resistance Zone (Yellow Box - Top):

Marked as a strong supply area where price has repeatedly been rejected (highlighted by red arrows).

Acts as a key zone where sellers are in control.

Also aligns with a descending trendline, reinforcing bearish pressure.


2. Support Zone (Yellow Box - Bottom):

This is the target point marked at 1.35387, which previously served as a demand zone.

The chart suggests this level as the next significant area where price might find buyers.


3. Trend Context:

Price is moving within a descending channel (black trendlines), confirming the overall downtrend.

The 200 EMA (1.36834) is acting as dynamic resistance, keeping price under pressure.


4. Projected Move (Blue Box):

Shows a potential drop of ~91 pips toward the support level.

A bearish wave is anticipated as per the black zigzag line on the chart.


5. RSI Indicator:

RSI is near neutral (49.02 and 49.70) — suggesting no overbought/oversold conditions, but confirming lack of bullish momentum.

RSI is aligned with price trending down.

Mr SMC Trading point

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Summary:

Bias: Bearish

Entry Zone: Near current price or minor pullback (1.364–1.365)

Target: 1.35387 (support zone)

Invalidation: Break and close above resistance level / 200 EMA (~1.3685)

Trend: Downtrend within channel



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