USD /CAD) bearish reversal analysis Read The captionSMC 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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