The USD/CAD Linear Regression Channels hourly chart illustrates:
The USD/CAD pair movement of yesterday changed the features of the channels of today.
Yesterday, USD/CAD visited 0.9973 - the prominent intraday support level - which today corresponds to confluence of the intermediate line of the Yellow channel and the lower limit of both Violet & Blue channels. However, USD/CAD failed to push higher towards 1.0050 but instead it declined with significant bearish price action.
This gives an early indication of that the bullish direction is endangered, so there is a possible Head and Shoulders reversal pattern being formed.
USD/CAD is expected to return again to its key-level 0.9975 which is expected to be determinant for the next movement of the pair.
Breakdown of this intraday support level 0.9975 confirms the reversal pattern initially allowing the USD/CAD pair to decline towards the lower limit of the Yellow channel at 0.9920 and then 0.9888.
It is important to take into consideration that in case the pair fails to break through 0.9975 this will denote that the bulls are still intact and aiming for higher levels at 1.0050 and 1.0070.