After topping at 1.0087 yesterday and having failed to remain higher, the pair gave daily closure at 1.0022 showing Inverted Hanging Man candlestick giving a reflection of bearish rejection.
0.9960 level would be targetted as long as this bearish scenario remains valid by cosnolidating below 1.0080.
Last week an obvious bullish reaction was expressed towards 0.9930 (few pips above 0.9920 our mentioned entry level) which led to daily closure at 0.9978 which is above 50% Fibonacci Level around 0.9955 which was bullish signal.
The USD/CAD pair is now trading above 0.9955 level (50% Fibonacci), which has provided temporary support for the pair this week. However, bullish consolidation above 0.9990 is required for more bullish domination.
The USD/CAD pair strongly rose last week pushing steadily above psychological barrier of 1.0000. The upside move has been extending towards 1.0100 and the possibility of a bullish move remains valid unless 0.9920 - 0.9960 zone is broken.
Obvious bearish price action was seen around the price level of 1.0100, which is manifested in inverted Hanging Man daily candlestick that gave us early indications that the bullish momentum has faded away. Hence, the price action around 1.0100 should be watched carefully.
Support: 1.0010, 0.9960, 0.9920, and 0.9830.
Resistance: 1.0060, 1.0100, 1.0155, 1.0205, and 1.0270.
