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 upper limit of the Flag pattern is located.
This price level corresponding to the upper limit of the flag was retested again Yesterday after the initial bullish breakout that took place on Friday.
On Monday, daily closure above 61.8% Fibonacci level (1.1020) confirmed the Flag pattern rendering price level of 1.0985 as a valid BUY entry which is running in profits now.
Projection target is roughly located at 1.1250.
Last week, the USD/CAD pair has established a recent consolidation zone between 1.0990 - 1.0850.
Four-hour fixation above price zone of 1.0990-1.1025 (50% Fibonacci level) confirmed the bullish flag pattern mentioned above offering a valid BUY entry.
Successive BUY opportunities existed around 1.0980-1.0950 including Yesterday's retesting. The pair is currently challenging the weekly high around 1.1095 with bearish rejection being expressed so far.
Projection targets are located initially around 1.1235 - 1.1270. SL should be advanced to 1.1020.
Thus, the buyers should be careful with their long positions around the current levels.
