Five months ago, a prominent bottom was established around 1.0260. This happened after the intensive bearish momentum that led to 1.0254.
An important key level was located around 1.0505. This was the key level for the previous weeks' movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located.
The nearest support zone was located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again resulting in a bullish hammer weekly candlestick.
As Expected, bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing higher towards 1.0460 then 1.0500 being tested today.
The price level around 1.0470 remains the nearest considerable resistance for the pair. A valid sell entry was recommended at retesting. A daily hanging man was expressed on October 30 followed by a bearish engulfing candlestick confirming our taken position. However, the loonie failed to break down below 1.0400 returning back to the same resistance level thus establishing another ascending bottoms around 1.0400 1.0450 which threatens our SELL position.
The SELL position remains valid as long as the pair is trading below 1.0500 on a daily basis. However, daily fixation above this level with obvious bullish engulfing pattern will probably enable the pair to reach 1.0560 and 1.0600 quickly.
