In the previous articles we suggested that the potential downside movement remained valid as long as the pair was 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. It opened the way towards 0.9835 without further bearish pressure, which indicated a coming bullish retracement which is taking place now.
It's important to note that the USD/CAD long-term view is still bullish as long as it is consolidating above newly established ascending bottoms at 0.9830.
This week, price level 0.9905 (lower limit of previous congestion zone) was broken down with quite strong bearish strength manifested in the long red 4H candlestick which led the USD/CAD pair towards 61.8% Fibonacci around 0.9850.
Price Zone 0.9850 was rendered as a confluence of support for the USD/CAD pair. Thus, a valid BUY entry was suggested yesterday. However, the current price levels around 0.9910 - 0.9925 should be watched as it may end the current bullish move as well as it may provide a valid SELL entry with SL above 0.9960.
Resistance: 0.9955, 1.0040, and 1.0080.
Support: 0.9850, 0.9805, and 0.9760.
