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.
On Tuesday, the bulls managed to breakthrough above 1.0360. That is why, Price level 1.0460 has been visited quickly as expected.
Another significant Supply Level is located around 1.0505 (a previous mid-range). This is the key level for today's movement as 4H closure above it will enable the pair to reach 1.0560 probably.
Re-closure below 1.0460 puts bearish pressure again to get back towards 1.0375 and if this happens next, there will be a high probability this time to extend the bearish movement towards 1.0270 again.
