Despite this prolonged sluggish bearish movement of the USD/CAD pair, bullish Head & Shoulders reversal pattern was expected to be formed yesterday with neck line located around 0.9900. However, the pair expressed a significant bearish price action towards this neck-line as well as the upper limit of the Yellow channel at 0.9900.
Failure of the USD/CAD pair to breakthrough intraday Resistance level at 0.9900 brought it back down towards the lower limit of the Yellow channel around 0.9860 which should constitute an intraday Support level for the pair.
The backside of the broken Violet channel as well as the midline of the Yellow channel located at 0.9880 constitute a strong intraday Resistance level for the USD/CAD pair providing a valid SELL entry with SL located above 0.9900.
TP levels are to be located at 0.9860, 0.9840 then 0.9800.
