The USDCAD pair was declining for two successive weeks until strong recovery observed on June 14.
Daily closure above 1.0260 that took place on Wednesday allowed another bullish impulse to take place.
The USD/CAD pair rose steeply last week approaching key-resistance level of the ascending channel around at 1.0530 as depicted on the chart.
Resistance level located at 1.0530 may trigger some bearish retracment within the ascending channel. However, breakthrough above 1.0595 level might delay any bearish retracement.
Bearish pressure was expected to be present at 1.0510-1.0550 (the upper limit of the depicted movement channel) which expressed quite strong bearish price action manifested in Yesterday's inverted hammer daily candlestick.
Reversal of the ongoing bullishness may take place around the current levels 1.0500-1.0550 especially after the bearish pressure manifested Yesterday. This may provide a valid SELL entry with SL located above 1.0595.
