The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted on the chart. Since then, the pair has established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555.
This was followed by intensive bearish pressure that led to breakdown of 1.0450 and 1.0380 with a recorded low 1.0325.
As depicted on the chart, price zone 1.0325-1.0360 which constituted a strong support area. However, strong bearish pressure off 1.0440 was applied on the pair to breakdown previous daily low at 1.0325.
As mentioned yesterday, early breakdown of 1.0360-1.0325 will probably initiate bearish swing towards 1.0270 then 1.0220 without further re-testing of 1.0450.
The next most significant support level is located around 1.0160 (near the low of June). However, price action should be watched initially at 1.0270 for any signs of bullish reversal.
