Considering the hourly chart of the USD/CAD pair we can find the following:
The Yellow and Blue channels are both transverse due to the sideways consolidation range 0.9890 - 0.9830; the USD/CAD has been trading within during this week. The Violet channel is bullish due to the yesterday's quick bullish move in reaction to 0.9830 corresponding to the lower limit of the Yellow & Blue channels As for the Intraday perspective, the USD/CAD pair may be forming a new double bottom reversal pattern at 0.9835 which constituted the Intraday Support for the USD/CAD pair on Yesterday & last Monday. However, a bullish follow up and fixation above 0.9890-0.9900 is necessary to confirm the reversal pattern targetting at 0.9960. The USD/CAD pair will remain bullish as long as it is trading inside the Violet channel above 0.9850 which constitutes the lower limit of Violet channel and the intermediate line of the Yellow channel. Now the USD/CAD pair is testing the upper limit of the Yellow channel at 0.9890 and seems to be reversing. However its breakthrough will allow the pair to target the higher price level 0.9925 and 0.9960.
Price zone 0.9965-0.9955 is considered as an Intraday support zone corresponding to the lower limit of Violet channel and the intermediate line of the Yellow channel.
Based on the previous analysis:
BUY entry at 0.9855 with SL below 0.9815 is recommended while TP levels are to be located at 0.9900 and 0.9955.
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