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 price level of 1.0250.
Since June 4, the USD/CAD pair movement is maintained within the midterm slightly bearish depicted channel with its upper limit located around 1.0270.
Fibonacci level 50% is located at price levels of 1.0120 (R1) which was broken down yesterday and 61.8% is located at 1.0045 (S1) which is considered as a strong Support Level also corresponding to the lower limit of the bearish channel depicted on the chart.
During the last week, USD/CAD has been trapped within a narrow-ranged price zone between 1.0170 -1.0230, the upper limit of which prevented further upside movement of the pair showing bearish price action which pushed the pair to the downside breaking down the lower limit of the consolidation range as well Fibonacci level 50% around 1.0120 which was broken yesterday.
On the short-term, price level of 1.0045 constitutes an intraday support which is expected to push USD/CAD to the upside towards 1.0175 then 1.0235 with SL below 0.9990.
Price zone between 1.0230 -1.0250 should be carefully watched for price action in order to take a profitable trade at this key level.
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