The lower limits of the Violet and Blue channels at 0.9990 were tested, providing strong support for the USD/CAD pair.

Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0295 establishing a significant support level at 1.0050 and the newer one at 1.0125.

Retesting of Price Level 1.0125 will be also a testing of the lower limit of the Blue channel which may be a good BUY entry then.

The Violet channel on the 4H chart is quite steep and narrow that predicted its breakdown on Monday, which is expected to reach the Price Level 1.0125 initially.

Yesterday, Price Level 1.0294 corresponding to the backside of the broken Violet channel and the upper limit of the Blue channel has resisted further upside movement providing Intraday Resistance for GBP/USD. However, its breakthrough will probably allow the pair to make another bullish swing towards 1.0320 and 1.0380.

On the Hourly chart, the USD/CAD pair has been moving within the bullish Violet and Blue channels and the wide-ranged Yellow channel which represents longer-term perspective.

We can easily notice that the USD/CAD was unable to make a higher high today. Instead, it has recorded a lower high then was directed to the downside towards 1.0240.

The USD/CAD is currently testing the lower limit of the Yellow channel & the mid-line of the Violet & Blue channels at 1.0240 which if broken, will probably allow a quick decline towards the lower limit of the Yellow channel at 1.0190 which may be broken too allowing the pair to reach 1.0150-1.0125.

The USD/CAD has its Average Daily Range located at 1.0200 which may provide some Intraday Support for the pair.

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