USD/CAD Potential Reversal Setup at Key Support Zone

analysis of the USD/CAD 2-hour chart you provided:

Technical Breakdown:

📉 Downtrend Channel (Falling Wedge)

Price is moving within a descending channel structure (marked with blue lines).

The market has been making lower highs and lower lows, typical of a bearish trend.

Key Levels:

✅ Support Zone: Around 1.35500 - 1.35800

Price has reached this strong support zone.

Previous price reactions from this area suggest buying interest.

✅ Resistance Zone: Around 1.36800 - 1.37200

Identified as the next major obstacle for bullish movement.


✅ Target Point: 1.37503

Marked as the final potential bullish target if price breaks above resistance.

Indicators:

70 EMA (Exponential Moving Average) currently at 1.36475

Price is trading below the EMA, confirming the short-term bearish pressure.

A breakout above EMA may support bullish momentum.

Price Action Expectation:

⚡ Bullish Scenario:

If price holds at the support zone and breaks out of the descending channel:

Expect a reversal towards the resistance zone.

If that breaks, price may target 1.37503, completing a potential bullish reversal pattern.

⚠️ Bearish Scenario:

If price fails to hold the support zone:

A breakdown below 1.35500 could trigger further downside.

Next significant support likely around 1.35000.

Summary:

Market is at a key decision zone.

Watching for:

Rejection and breakout above the falling wedge → Bullish opportunity.

Breakdown below support → Bearish continuation.