Intraday Technical Outlook:

The USD/CAD pair has been trading within the depicted almost identical bearish channels since Monday. This comes as retracement after a strong bullish movement that took place last month.

Yesterday the USD/CAD pair expressed the excellent bearish reaction towards the upper limit of the Yellow, Violet & Blue channels around price level 1.0370 which pushed the pair towards the lower limit of the Yellow channel around 1.0235 which constituted a strong Intraday Support for the pair.

Today, the USD/CAD pair managed to breakthrough the upper limit of the Violet & Yellow channels. Thus, the bearish retracement, which took place this week, is expected to come to an end.

The backside of the broken limit of the Yellow channel around 1.0270 will probably constitute a solid Intraday Support Level. However, the USD/CAD has an Intraday Resistance zone being tested now around 1.0350-1.0365 which is expected to hold price below before further retesting of the broken bearish channels.

In the prospect the USD/CAD pair remains bullish as long as the pair is trading above the previous congestion zone 1.0230-1.0150.

Trade Recommendations:

- Price Level 1.0270 is expected to be valid BUY entry with SL located below 1.0210.

TP levels are to be located at 1.0310, 1.0350 & 1.0410.

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