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.
Since then, the pair has established a consolidation range between 1.0450-1.0560.
Despite the signs of bearish reversal expressed around 1.0550, all trials for breakdown below 1.0450-1.0425 have been aborted untill we had a bullish breakout above 1.0555 on Friday
This breakout rendered this price level a valid BUY entry on retesting which took place Yesterday with SL as 4H closure below 1.0500 ( mid-range support ).
This bullish breakout has a projection target extending up to 1.0670. However, we should notice the price action around 1.0655 as it corresponds to previous top that goes back to October 2011.
