The USD/CAD pair was trading in oversold position within a wide range bearish channel which is depicted on the chart in red after the pair broke through the upper limit of the short term bearish channel presented on the chart in Blue, indicating a possible bullish retracement towards the price level of 0.9970 with two successful retestings of the backside of the broken channel at 0.9888 then at 0.9845.
Breakout above the bearish Blue channel gave the opportunity for the USD/CAD pair to visit the upper limit of the longer term channel around the price level of 1.0025. However, the pair found resistance around the price level of 0.9945. Since then, the USD/CAD pair has been trapped within the consolidation range between 0.9845 - 0.9945.
The price level of 0.9845 which corresponds to the lower limit of the consolidation range was tested yesterday when we suggested a BUY entry with SL located below 0.9800 with taking into consideration that price level of 0.9945 turned to a strong resistance level now which corresponds to the upper limit of the long term bearish channel as well.
Some profits should have been taken by now and Stop Loss should be advanced directly below Price Level of 0.9840.
Fixation below the price level of 0.9800 invalidates the bullish scenario for the short-term opening the way towards the lower limif of the channel around price level of 0.9730.
For the long term aspect, the price level of 1.0025 corresponds to Fibonacci levels of 50% and 78.6% of the most recent two bearish swings. That's why price action should be watched there for a valid long term SELL entry with SL located above 1.0080.