Since the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) for few times.

The market has shown a significant bullish recovery around 1.0830 (bullish engulfing daily candlestick) aiming to push higher towards 1.0910-1.0950 where significant bearish pressure was previously applied on March 21.

The USD/CAD pair found solid resistance around 1.0910-1.0950 that was able to pursue the ongoing bearish momentum.

The pair was trapped within the depicted congestion zone between such two important Fibonacci Levels until bearish breakout turned to the bearish side.

Bearish projection targets were located around 1.0725 and 1.0685 (the lower limit of the ongoing bearish channel ). Both targets got visited shortly after as expected.

Bullish price action will probably originate at retesting of 1.0685-1.0660 which is the origin of the previous bullish impulse initiated in December 2013.

That's why, the price action should be watched for a possible BUY entry at retesting.