The bulls managed to hit fresh highs (around 1.1220) that haven't been visited since 2009.
Recently, USD failed to keep its gains against CAD, and the USD/CAD pair was pushed to the downside indicating weakness of the ongoing bullish momentum.
Friday's candlestick came as a bullish hammer. This indicates bullish presence around the price level of 1.0960.
It's important to note that the pair established a consolidation zone between 1.0850 and 1.0960. This renders the zone as a support area.
Breakdown of 1.0960 opens the way directly towards 1.0850 which comes to meet the uptrend line depicted on the chart. This may provide a valid BUY entry with SL as daily closure below 1.0850.
On the other hand, the nearest resistance zone is located around 1.1230-1.1250 corresponding to the 50% Fibonacci level of the bearish swing that extended between March 2009 and July 2011.