Looking at the USD/CAD daily chart, We find that the pair could successfully break a mid-term uptrend line extending since last August connecting multiple buttoms since then.
Recently after multiple days of indecision manifested in Doji daily candlesticks, the pair could establish a buttom at 0.9924 then we had a bullish engulfing daily candlestick last Friday.
This will probably end the bearish decline temporarily pushing the pair to the upside to retest area 1.0116-1.0165 corresponding to the broken uptrend line, Fibonacci levels 50% & the drawn downtrend line.
Obvious bullish price action towards the support level 0.9942 is seen on the 4H chart which pushed the pair to the upside.
We see clear bullish breakout of the marked bearish channel which indicates direction change even on the short term.
Area 0.9970-0.9950 corresponds to the back side of the broken bearish channel & Fibonacci level 61.8% mentioned Yesterday acted as support for the pair.
After hiting the support area, the pair formed a buttom at 0.9970 then moved to the upside failing to break last Friday's high which brings the pair back to retest support area 0.9970-0.9950 or near it.
Break of the high recorded on last Friday at 1.0037 will open the way to 1.0116-1.0165 where price action should be watched then for a possible SHORT entry.
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