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 had been aborted untill we had a false bullish breakout above 1.0555 last week.
This false breakout was quickly followed by intesive bearish pressure that led to breakdown of 1.0450 and 1.0380 with a recorded low 1.0325.
As depicted on the chart, the current zone 1.0325-1.0360 constitutes a strong support area where a possible buttom may be established to lead towards 1.0450 initially.
A valid SELL entry may be taken at retesting of 1.0450 with SL located above 1.0510.
