This week, the USD/CAD pair has returned to test the previous support zone around 1.0900 (50% Fibonacci level) which previously provided a considerable support at retesting on February 19.
The depicted chart shows that the USD/CAD bulls failed to show enough bullish momentum above 1.1200. This exposed price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels).
Daily closure below 1.0920 took place on Wednesday. However, it didn't take long time to have a bullish engulfing daily candlestick as a bullish reaction on the next day.
The 4H Support level around 1.0860 has provided enough support so far to push towards 1.0980.
On the other hand, the price zone of 1.0970-1.0990 is expected to provide a considerable resistance as well. This price zone corresponds to the recently established resistance zone on the 4H chart.
Any further visiting will probably offer a valid sell entry with stop loss located just above 1.1035.
