The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in 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 which was followed by intensive bearish pressure that led to the breakdown of 1.0450 and 1.0380 with a record low of 1.0254.
As depicted in the chart, the price zone of 1.0325-1.0360 constituted strong support area. However, strong bearish pressure at 1.0440 was applied on the pair to breakdown the previous daily low of 1.0325 then a prominent bottom was established around 1.0260. Since then, the pair has been bullish untill significant bearish pressure was applied around 1.0430-1.0440.
A SELL entry was suggested around Resistance 1.0460 which hasn't been reached recently. Instead, bearish momentum was initiated earlier around 1.0440. This opens the way towards 1.0265 ( Prominent Support ) where a valid buy entry may be taken upon watching bullish price action.
Another significant Demand Level is located around 1.0160 ( the lower limit of the ascending channel depicted in the chart).
Intensive 4H closure below 1.0250 invalidates the bullish scenario mentioned above opening the way towards 1.0160 then 1.0100 probably.
