The potential downside movement remains valid as long as the pair was trading below 1.0040 and below 1.0000 area, the psychological resistance.
The chart showed a narrow consolidation range 0.9910 - 0.9970 located few pips above 0.9890 (50% Fibonacci Level), which was broken through.
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. Today bullish retracement is taking place and the rate is approaching the area of 0.9880 - 0.9910 which capped the previous bullish attempt.
Price Zone 0.9910-0.9950 is considered to be a strong resistance zone (previous consolidation range) which provides a valid SELL entry with SL located above 0.9960.
4H closure below 0.9890 is a good bearish signal which confirms the bearish bias for the pair in the short term.
Resistance: 0.9910, 0.9950,1.0040, and 1.0080.
Support: 0.9880, 0.9855, 0.9805, and 0.9780.
