Lack of the bullish steam seemed to exist during the last few weeks and the pair seems to be under negative pressure which was manifested on March 26 in the massive bearish daily candlestick.
Bearish rejection around 1.0300 was followed by multiple days of indecision within the same consolidation range 1.0225-1.0330 until the pair gave obvious daily closure below 1.0220 which opened the way towards the projection target at 1.0110.
Support located around 1.0130 (50% Fibonacci) which was mentioned to be profit taking level expressing quite significant bullish price action that lead the pair towards the downtrend line at 1.0200.
Price Zone 1.0200-1.0230 corresponds to a downtrend line that's depicted on the 4H chart that is why a low probability short-term SELL entry can be taken provided that the USD/CAD pair remains below 1.0230.
It is important to note that this SELL entry may be quite risky due to first target level for this SELL entry should be located at 1.0140.
The material has been provided by InstaForex Company - www.instaforex.com
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