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 predicting its breakdown soon to reach 1.0125 initially.
On the Hourly chart, USD/CAD has been moving within bullish Yellow & Blue channels, which has been broken today.
Retesting of the backside of 1.0200 (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 an Intraday Resistance level at 1.0240 which shouldn't be bypassed today in order to achieve the bearish scenario.

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