The USD/CAD pair is demonstrating a continuation of the Flag Pattern after the long bullish swing initiated around the price level of 0.9797 on the 1st of May, which is expected to reach the target of 1.0360 then 1.0450 as initial targets for the pattern, when it is confirmed by breakthrough above 1.0310 (61.8% Fibonacci Level).
Since June 4, the USD/CAD pair movement is maintained within the mid-term slightly bearish depicted channel with its upper limit located around 1.0300.
Fibonacci level 50% and 61.8% are located at Price levels of 1.0270 and 1.0310 respectively which are regarded as strong Resistance levels for USD/CAD that need to be broken in order to confirm the Flag Pattern mentioned above.
Since yesterday, USD/CAD has been trapped within a narrow-ranged price zone between 1.0160-1.0230, the upper limit of which prevented further upside movement of the pair showing bearish price action yesterday.
On the short-term Price level of 1.0160 constitutes a strong Intraday Support which is expected to push USD/CAD to the upside towards 1.0200 then 1.0270 with SL below 1.0090.
Price zone between 1.0270-1.0290 should be carefully watched for price action in order to take a profitable trade at this key level.
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