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.
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.
On Wednesday, 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. The pair gave daily closure above both 50% & 61.8% Fibonacci levels.
Also the previously mentioned double-bottom pattern with neckline at 0.9875 has already hit its full target at 0.9925.
Price Level 0.9955 (the upper limit of the previousl consolidation range) should be watched for price action as bearish manifestations would indicate a valid SELL entry.
Price Zone 0.9890-0.9870 is rendered a confluence of support for the USD/CAD pair. Hence, a valid BUY entry can be taken there with SL just located below 0.9840.
Resistance: 0.9950, 1.0040, and 1.0080.
Support: 0.9870, 0.9830, 0.9805, and 0.9760.
