After the USD/CAD pair broke below 0.9845 the market went to the downside. It reached 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 was considered to be a bullish signal in the long term with a possible bullish 123 reversal pattern appearing on the DAILY chart targeting 0.9980 as long as the pair is fixating above 0.9880.
Considerable bullish price action was expressed yesterday towards 0.9770 (the newly established ascending bottom) which is considered to be a quite strong bullish manifestation.
Price zone 0.9820 - 0.9850 was mentioned to be an intraday resistance zone. In order to resume the targets for the bullish patterns targeting around 0.9980 there should remain consolidating above the intraday resistance zone which is taking place today.
Fixation below price level of 0.9650 breaking the established bottom around 0.9740 invalidates the bullish scenario for the current situation.
