Four months ago, a prominent bottom was established around 1.0260. This happened after the pair found strong bearish pressure around 1.0555-1.0600, this was followed by intensive bearish momentum that led to 1.0254.

An important key level was located around 1.0505. This was the key level for the previous weeks' movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located.

The nearest support zone is located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again on Thursday, resulting in a bullish hammer weekly candlestick. Since then, the pair has been consolidating within narrow range between 1.0260-1.0340, until we had a bullish breakout at the daily closure of October 8.

As Expected, bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing higher towards 1.0460 then 1.0500 being tested today.

The price level around 1.0465 remains the nearest considerable resistance for the pair. A valid sell entry was recommended at retesting. A daily hanging man was expressed on October 30 followed by a bearish engulfing candlestick confirming our taken position. However, the loonie pair failed to break down below 1.0400 returning back to retest 1.0465 thus establishing another ascending buttoms around 1.0400 and possibly around 1.0450 which threatens our SELL position.

The SELL position should be closed as long as the pair is trading above 1.0460 on a daily basis. Daily fixation above this level with this obvious bullish engulfing pattern will probably enable the pair to reach 1.0560 and 1.0600 quickly.