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USD/CAD) strong bullish trend Read The caption

164
SMC trading point update



Technical analysis of USD/CAD (U.S. Dollar vs Canadian Dollar) on the daily timeframe. Here's a breakdown of the trade


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Technical Breakdown:

1. Breakout from Descending Channel:

Price has broken out above a descending trend channel (marked with black lines).

This breakout suggests a potential trend reversal or at least a bullish correction phase.


2. Key Support Zone (Yellow Box):

The yellow zone marked as “support level” was a strong consolidation area.

Price has bounced off this zone multiple times, forming a solid base for further upside.


3. Bullish Price Action:

Price has closed above the previous resistance (now support), signaling bullish intent.

Current candle structure confirms strength with bullish continuation patterns.


4. RSI Indicator:

RSI is at 56.38, indicating bullish momentum without being overbought.

Suggests there is room for further upside before exhaustion.



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Target Levels:

Target Point 1: 1.37968 (near-term resistance)

Target Point 2: 1.38615 (intermediate target)

Target Point 3: 1.39064–1.39090 (longer-term resistance near the 200 EMA)



Mr SMC Trading point

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Trade Idea Summary:

Bias: Bullish

Entry Zone: Break and retest of the yellow support area (~1.368–1.371)

Target Zone: 1.379 – 1.390

Invalidation: Break below the yellow support zone

Confluence: RSI strength + breakout of downtrend channel + structural support



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