The USD/CAD Linear Regression Channels Hourly chart illustrates:
The USD/CAD currency pair remained in downtrend since last Wednesday within two identical bearish channels depicted on the chart.
On Friday the USD/CAD movement showed the bullish tendency presented in the bullish short-term Violet channel that was able to breakthrough the upper limit of the longer-term bearish channels.
Therefore, more attention should be paid to the bullish direction. Hence the price level 0.9970 should be considered for price action as it corresonds to the backside of the upper limit of the broken channels, the lower limit of the intact bullish violet channel & finnally a previous Intraday top.
As long as the USD/CAD pair is trading above 0.9970 with bullish price action, the pair is considered as bullish aiming towards 1.0050.
Breakdown of 0.9970 is likely to reveal the strength into the market aiming towards 0.9935 & 0.9888.
The material has been provided by Instaforex Company - instaforex.com
