The pair has been trending down when a bullish breakout above the bearish daily channel took place. However, the potential downside move remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.
On Friday, further downside movement was anticipated when the USD/CAD pair gave strong bullish reaction towards 0.9950 - 0.9925, a confluence of previous consolidation range acting as support.
The trading range for this week is between the key-support around 0.9660 and key-resistance around 1.0130.
Support: 0.9950,0.9925,0.9875, and 0.9840.
Resistance:0.9990,1.0010,1.0040, and1.0095.
Recommendation
Obvious breakdown below 0.9925 is needed to support the bearish scenario in the short-term targeting 0.9860 - 0.9840 initially.
Bullish rejection and stabilization above 0.9950 - 0.9925 areas enhances presence of further bullish movements towards 0.9980.