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 bullish movement managed to break above the upper limit of the depicted long-term channel (0.9725) which is considered to be a bullish signal in the long-term.
It is important to notice that USD/CAD broke below the established ascending bottoms around 0.9797 and 0.9780. It opens the way for the pair to retest the broken bearish channel and 61.8% Fibonacci level of the newly established bullish swing around 0.9725 where price action should be watched for a valid BUY entry.
Price zone 0.9820-0.9850 is an intraday resistance zone, a break above which is necessary to resume the targets for the bullish 4H Head & Shoulders pattern around 0.9900.
Fixation below price level of 0.9650 invalidates the bullish scenario for the current situation.
