The USD/CAD pair 4H chart revealed a strong bearish rejection of price level 1.0050, which pushed the USD/CAD pair downside towards 0.9990.
The lower limits of the Violet & 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 retesting of the backside of the broken violet channel. However it's considered risky to take bullish opportunity without obvious bullish price action.
On the Hourly chart, USD/CAD is moving within narrow ranged bullish channels which are being tested today with the lower limit of the Yellow channel at 1.0165.
Breakdown of 1.0165 opens the way for Price Levels 1.0125 initially, then probably 1.0050. However, rejection with bullish price action towards this level will probably be a good BUY entry towards new higher levels.
It's important to note that the pair has an Intraday Resistance level at 1.0185 corresponding to the backside of the broken violet channel which constitutes a valid SELL entry with SL located above 1.0230.

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