After puncturing the Weekly Low 0.9924, the USD/CAD currency pair came back quickly to trade above it again which may be a trap for sellers before direction change.
Also it's important to mention that USD/CAD view on the 4H chart isn't clear as it has been consolidating withing the same range 0.9920 - 1.0050 since January 25 which is almost a month within 130 pips range without real breakout untill now.
Now the pair is testing the upper limit of the bearish violet channel at 0.9985 after it failed to break its marked support at 0.9960-0.9940.
Break of this limit of the channel will allow the pair to reach its next resistance area 1.0040-1.0060.
The pair is approaching the upper limit of the bearish violet channel & the intermediate line of the transverse blue channel at 0.9985 which needs to be broken if the pair is going to resume its bullish movement.
The pair has its near support at 0.9960-0.9940 which should be defended by bulls.
Break of this support will initially open the way for 0.9924 the weekly low mentioned before.
Based on the previous analysis
We have an open LONG position which is still valid as long as the pair is trading above 0.9940.
The market indicates a BULLISH opportunity at break of the violet channel above 0.8885 with SL placed below 0.9940.
Profits should be taken at 1.0000,1.0025, 1.0050 with price action watching near 1.0050 for a possible reversal or breakthrough to extend our targets.
