The USD/CAD pair was trading in oversold position within a wide range bearish channel which is depicted on the chart in red.
Recently, the USD/CAD pair broke through the upper limit of the short term bearish channel which is depicted on the chart in Blue indicating a possible bullish retracement towards price level of 0.9970 seen on Wednesday with successful retesting of the backside of the broken channel at 0.9888.
Breakout above the bearish Blue channel opens the way for the USD/CAD pair to visit the upper limit of the longer term channel around the price level of 1.0025 as long as the pair is trading within the current consolidation range above 0.9888. However, the pair found resistance around price level of 0.9945 which will probably push the USD/CAD pair to retest 0.9888 again before further continuation of the bullish movement.
Price level of 1.0025 corresponding 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 SELL entry with SL located above 1.0080.