The USD/CAD pair 4H chart revealed a strong bearish rejection of 1.0050, which pushed the USD/CAD pair downside towards 0.9990.

The lower limits of the Violet and Blue channels at 0.9990 were tested providing strong support for the USD/CAD pair.

Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0225 establishing a significant support level at 1.0050 and the newer one at 1.0125.

Retesting of Price Level 1.0125 will be also a testing of the lower limit of the Blue channel which maybe a good BUY entry then.

The Violet channel on the 4H chart is quite steep and narrow that predicted its breakdown yesterday, which is expected to reach Price Level 1.0125 initially.

 
On the Hourly chart, USD/CAD has been moving within the bullish Yellow channel, which has been broken to the downside today.

Retesting of the backside of 1.0185 (the backside of the broken channels ) opens the way for Price Levels 1.0125 initially, then probably 1.0050.

It's important to note that the pair has Intraday Resistance levels at 1.0200 & 1.0240 which shouldn't be bypassed today in order to achieve the bearish scenario.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here .