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 1.0254.
As depicted on the chart, price zone 1.0325-1.0360 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 which initiated bearish swing towards 1.0270.
The next most significant support level is located around 1.0160 (near the low of June). However, price action should be watched initially at 1.0270-1.0250 for any signs of bullish reversal which may give bullish entry with SL located below 1.0215 (especially after the lack of bearish steam around the current levels expressed last week).
