The USD/CAD pair rose steeply last week approaching the key resistance level of the ascending channel around at 1.0530 as depicted in the chart.
The pair has been expressing a quite significant bearish reaction since last week due to bearish rejection expressed at the upper limit of the ascending channel.
Today, the possibility of a downside move is still intact, consolidation and trading below 1.0530 remains negative. However, we need to see the pair fixes below 1.0470 to enhance this bearish view. However, upon reaching down to 1.0425, the pair expressed strong bullish rejection which pushed the pair to retest 1.0550 again.
The reversal of the ongoing bullishness may be taking place around the current levels, especially after the bearish pressure manifested in the "Inverted Hammer & Spinning Top" expressed in the beginning of last week.
The price zone between 1.5390-1.5320 represents a strong support zone for the pair. Any bearish retracement will target this zone initially, where the price action should be watched for a possible BUY entry.
The previously suggested sell entry around 1.0550 remains valid with SL located above 1.0595 with target levels located at 1.0420 then 1.0340.
