USD/CAD) Down Trand analysis Read The caption

198
SMC trading point update



Technical analysis of USD/CAD (U.S. Dollar / Canadian Dollar) currency pair on the 2-hour timeframe, and it suggests a potential sell setup based on price action, key levels, and momentum indicators.


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Chart Summary

Pair: USD/CAD

Timeframe: 2H

Current Price: 1.36432

EMA 200: 1.37436

Direction Bias: Bearish

Volume: 6.92K

Key Tool: EMA 200, RSI, Support/Resistance Zones



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Technical Breakdown

1. Resistance Zone / Supply Area (~1.3680 - 1.3700)

The yellow box highlights a strong resistance zone.

Marked by three red arrows, where price has repeatedly rejected.

Indicates clear seller dominance in this area.


2. Break of Support Level

Price broke below the yellow support area and is now trading below it.

This signals a bearish breakout from a consolidation zone.


3. EMA 200 Trend Confirmation

EMA 200 (blue line) is sloping down.

Price is below the EMA, confirming bearish trend bias.

Acts as dynamic resistance.


4. Bearish Flag/Channel Break

A bearish flag or wedge pattern seems to have been broken downward.

The measured move (blue vertical line) suggests the projected drop.



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Target Point

Target Price: 1.34951

This is based on the measured move from the resistance zone.

It aligns with the previous demand/support zone.




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RSI (Relative Strength Index)

RSI (14) is 36.37, approaching the oversold zone.

This shows strong bearish momentum, but it also means price may stall or bounce slightly before continuing downward.



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Trade Setup Idea

Entry: After confirmation of breakout below 1.3640

Stop Loss: Above 1.3700 (resistance zone)

Take Profit: 1.34951

Risk-to-Reward: ~1:2+



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Risk Management & Caution

If price moves back into the yellow zone or breaks above 1.3700, the setup is invalidated.

Watch for high-impact news events (marked on the chart with U.S. flags) that may trigger volatility.




Mr SMC Trading point

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Conclusion

This is a well-structured bearish idea based on:

Resistance rejections

Break of support

Downward EMA slope

Bearish RSI reading


It reflects strong downside potential toward 1.3495, offering a clean shorting opportunity for swing traders




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