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 were able to resume the ongoing bearish momentum.
The pair was trapped within the depicted congestion zone between two very important Fibonacci Levels until bearish breakout turned to the bearish side.
Bearish projection targets got visited at 1.0725 and 1.0685 respectively (the lower limit of the ongoing bearish channel).
Bullish price action is now being expressed at retesting of 1.0630 which is the origin of the previous bullish impulse initiated in December 2013.
Please, also note the steep bearish channel depicted on the 4H chart. The price keeps respecting its limits at retesting. The pair has been retesting the backside of the broken upper limit since the beginning of this week.
That's why, price action was expected to be found allowing a BUY entry to be triggered. Possible targets are located around 1.0750 and 1.0820. SL should be set at daily closure below 1.0600.
The bulls should be conservative with the mentioned Stop Loss as the USD/CAD pair has been down-trending for quite a long period so far.
The material has been provided by InstaForex Company - www.instaforex.com
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