Breakout above the bearish Blue channel gave the opportunity for the USD/CAD pair to achieve 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 on Tuesday when we suggested a BUY entry with SL located below 0.9800 with taking into consideration that price level of 0.9915 turned to a strong Intraday resistance level which corresponds to the upper limit of the long term bearish channel as well.
Some profits should have been taken at 0.9880 and Stop Loss should be advanced directly below entry level of 0.9840.
Fixation above 0.9915 and 0.9945 which are intraday Resistance levels is required to resume the bullish movement towards higher resistance levels around 1.0025. However, fixation below the price level of 0.9800 invalidates the bullish scenario for the short-term opening the way towards the lower limit 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.