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 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. It opened the way towards 0.9825 without further bearish pressure which indicated a possible bullish retracement to take place.
Yesterday, the USD/CAD pair expressed quite strong bullish reaction breaking through the upper limit of the depicted bearish channel on the 4H chart with a newly established ascending bottom at 0.9830, also the pair gave daily closure above 61.8% Fibonacci level.
Now there is an obvious double bottom pattern with neckline at 0.9875 to be targeting at 0.9925.
Resistance: 0.9900, 0.9950, 1.0040, and 1.0080.
Support: 0.9855, 0.9830, 0.9805, and 0.9760.
