The USD/CAD pair has been down-trending within the depicted bearish channel. This bearish trend started with retesting 1.1260 when bears initiated this extensive bearish impulse.
Two months ago, the bearish swing mentioned above was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.
In August, bullish breakout off the movement channel took place. This enabled the current bullish Flag pattern to be established.
In one month, a bullish rally extended from 1.0620 reaching 1.0990 where the Flag pattern is roughly located.
This week, the USD/CAD pair has been testing 50% - 61.8% Fibonacci Levels of the most recent bearish swing. A recent consolidation zone was established between 1.0990 - 1.0850.
Four-hour fixation above price zone of 1.0990-1.1025 (61.8% Fibonacci level) confirms the bullish flag pattern mentioned above offering a valid BUY entry.
Projection targets are located initially around 1.1235 - 1.1270. SL should be located below 1.0940.
These levels haven't been visited since March when the whole bearish swing was initiated.