The USD/CAD pair has been downtrending within the depicted bearish channel. This bearish trend started with retesting 1.1260 when bears initiated this extensive bearish impulse.
Two months ago, the bearish swing mentioned above was stalled around the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper channel one.
In August, bullish breakout off the movement channel took place. This enabled the current bullish Flag pattern to be established.
This week, the USD/CAD pair has been testing 50% - 61.8% Fibonacci Levels of the most recent bearish swing. A recent consolidation zone was established between 1.0990 - 1.0850.
Four-hour fixation above price zone of 1.0990-1.1025 confirms the bullish flag pattern mentioned above offering a valif BUY entry.
Projection targets are located initially around 1.1235 - 1.1270. SL should be located below 1.0940.
These levels haven't been visited since March when the whole bearish swing was initiated.
The material has been provided by InstaForex Company - www.instaforex.com
