Having passed through the Weekly Low 0.9924, the USD/CAD pair resumed the trading higher than this point. This fact can be considered as negative for sellers.
Also it is necessary to mention that the position of the USD/CAD pair on the 4H chart is controversial as since January 25it has been consolidating within the same range 0.9920 - 1.0050. During the month the range remained over 130 pips without a real breakdown. However, a possible bullish Head & Shoulders pattern is likely to be formed on the 4H chart with the neckline 1.0018.
Yesterday the USD/CAD pair failed to break through the resistance level 1.0040-1.0060. Therefore, once again the pair began retesting the support level 0.9940 which corresponds to the shoulders area of the H&S pattern.
The pair did not find support at the lower limit of the violet channel. However, the 0.9940 level is expected to be defended by bulls. Otherwise, the strong bearish movement towards the point 0.9905 is likely to start.
In case the 1.0040-1.0060 level is broken, the next target for the pair will be seen at the 1.0150 level.
