The USD/CAD pair movement was sluggish bearish during the previous days of consolidation which is manifested within the slightly bearish direction of the Yellow & Blue channels depicted on the chart.
Despite this prolonged sluggish bearish movement, a bullish Head & Shoulders reversal pattern is probably being formed at the current time with neck line located around 0.9898.
Consolidation above the upper limit of the Yellow channel around 0.9875 also enhances the bullish view for the USD/CAD pair to achieve the H&S pattern target at 0.9940.
Price level of 0.9900 is considered as a significant intraday resistance level corresponding to the backside of the Violet channel which needs to be broken in order to resume the bullish movement aiming at higher targets towards 0.9930 initially.
Bearish breakdown of 0.9865 currently invalidates the bullish scenario.
