In the previous articles we suggested that the potential downside movement remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.
Price zone 0.9900 - 0.9860 (Important Fibonacci Levels) provided strong support expressing strong bullish price action, which is manifest in the giant bullish engulfing daily candlestick expressed last month.
The USD/CAD pair expressed strong bearish reaction towards 1.0020 - 1.0050, failing to consolidate above 1.0040. It indicated a strong bearish move towards 0.9995, then 0.9945.
The Daily chart showed a narrow consolidation range 0.9905 -0.9955, located few pips above 0.9890 (50% Fibonacci Level) which was broken down last week. That is why retesting of 0.9905 will be considered as a valid SELL entry with SL as 4H closure above 0.9930.
On Monday the USD/CAD pair expressed quite strong bearish reaction towards 0.9880 which corresponded to the upper limit of the depicted bearish channel on the 4H chart. This renders 0.9855 a valid Intraday SELL entry on retesting with SL located just above 0.9885. 4H closure above 0.9860 is an early signal to exit this position as there is a newly established ascending bottom at 0.9830 which needs to be broken down early.
Price Zone 0.9890 - 0.9910 should be watched at retesting as it will probably provide a valid mid-term SELL entry with SL as 4H closure above 0.9930.
Support: 0.9830, 0.9805, and 0.9760.
Resistance: 0.9855, 0.9900, 0.9950, 1.0040, and 1.0080.
