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 0.9910 - 0.9970 located few pips above 0.9890 (50% Fibonacci Level), which was broken through.
It's important to note that the bullish retracement movement is still intact as long as it is consolidating above the newly established ascending bottoms at 0.9830 which needs to be broken.
Last week price level 0.9915 (lower limit of previous congestion zone) was broken through 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 without further bearish pressure, which indicated a coming temporary bullish retracement which is taking place now.
Consolidation should fixate below 0.9850 then 0.9830 in order to resume the bearish movement towards lower levels.
Resistance: 0.9955, 1.0040, and 1.0080.
Support: 0.9850, 0.9805, and 0.9760.
