Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where the pair has established a prominent congestion zone.
The USD/CAD pair found solid resistance around 1.0910-1.0950 that was able to resume the ongoing bearish momentum when bearish breakout took place to the bearish side.
Bearish projection targets got visited at 1.0725 and 1.0685 respectively (the lower limit of the ongoing bearish channel).
As expected, bullish price action was expressed at retesting 1.0630 which is the origin of the previous bullish impulse initiated in December 2013 and the backside of the upper limit of the broken 4H channel.
That's why, a valid BUY entry was suggested. Expected targets are located around 1.0750 and 1.0820. SL should be advanced to be slightly below 1.0650.
The bulls should be conservative with their targets and tight Stop Loss as the USD/CAD pair has been downtrending for a long period. The downtrend could resumed anytime.
The material has been provided by InstaForex Company - www.instaforex.com
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