After the USD/CAD pair broke below 0.9845, the market went to the downside reaching the price level of 0.9635 testing the lower limit of the depicted bearish long-term channel which expressed a considerable bullish strength.
The USD/CAD pair reacted strongly towards the upper limit of the depicted channel pushing the pair to the downside testing the intraday Support zone 0.9720-0.9700 (neckline of a possible bullish H&S reversal pattern)
It's important to notice that the USD/CAD pair is probably establishing an ascending bottom around 0.9777 which may act as intraday support to be watched.
Price level of 0.9840 expressed bearish price action yesterday. However, the pair is currently testing the backside of the broken trendline around 0.9777 which will be the key-level of the next movement.
Fixation above 0.9845 threatens again the bearish view confirming the possible bullish Head & Shoulders pattern depicted on the chart which will be targetting around 0.9920.
