Since the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20, the pair has been going down within the depicted bearish channel which managed to push towards price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) for few times now.
Although previous daily closure below 1.0920 took place, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.
Later on, the price zone of 1.0875-1.0830 (extending down to 61.8% Fibonacci level and the lower limit of the ongoing movement) provided significant bullish pressure.
The market has shown a significant bullish recovery around 1.0830 (bullish engulfing daily candlestick) aiming to push higher towards 1.0910-1.0950 where significant bearish pressure was applied previously on March 21.
As expected, a bullish visit towards 1.0940 (the upper limit of the ongoing congestion zone) is taking place right now shortly after we mentioned in previous articles.
We see the pair may face temporary resistance around these levels. A bearish corrective limb is expected to take place towards 1.0888 ( depicted on the 4H chart ) to collect more buyers to allow a bullish breakout above 1.0950 to take place after a long bullish rally.
The material has been provided by InstaForex Company - www.instaforex.com
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