Two months ago, the USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as
depicted in the chart. This happened when the pair established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555, which was followed by intensive bearish pressure that led to the breakdown of 1.0450 and 1.0380 with a record low of 1.0254. As depicted in the chart, a prominent bottom was established around 1.0260. Important level is located around 1.0505 (a previous mid-range). This was the key level for last week's movement as re-closure below it enabled the pair to breakdown 1.0455 too, where the lower limit of the depicted consolidation range was located. The nearst support zone is located around 1.0330-1.0300, where bullish pressure may be applied to push the pair again towards 1.0450. Lack of bearish momentum is witnessed today. The price level around 1.0455 remains the nearest considerable resistance for the pair, a valid SELL entry is recommended at retesting with SL located above 1.0500.
