Fresh highs (around 1.1220) have been recently touched after a long-time absence.
Shortly after, USD failed to keep its gains against CAD, and the USD/CAD pair was pushed to the downside indicating weakness of the ongoing bullish momentum.
On the other hand, the nearest resistance zone is located around 1.1230-1.1250 corresponding to the 50% Fibonacci level of the bearish swing that extended between March 2009 and July 2011.
Last week, a bullish engulfing daily candlestick was expressed at retesting of 1.0900 after a few weeks of bearish movement between off 1.1210 down to 1.0900.
It's important to note that the pair has an established consolidation zone between 1.0850 and 1.0960.
This renders the zone as a support area that provided considerable support at retesting on February 19.
The bullish rejection expressed at 1.0960 is probably pushing towards 1.1235 corresponding to 50% Fibonacci.
Daily fixation above 1.1235 opens the way directly towards the next resistance level around 1.1650 corresponding to 61.8% Fibonacci.
