The previous week was great for bulls of USD/CAD. Thisweek started with a bullish gap which had a huge impact on trading for the next three days. On Monday buyers managed to set a new top above 1.0555. On Tuesday and Wednesday sellers managed to push prices lower to close the gap. Two bearish movements and the bullish retracements helped the price to set a mid-term support at 1.0457. During the Asian session sellers managed to break this support, which at the same time is the 23.6 Fibonacci level. At first it gave sellers some momentum, but at the beginning of the European session the price is coming back.
We can assume that 1.0457 will be tested today for the first time as the closest resistance.
If sellers definitely break this support they will have chances to start the bearish reversal, which can reach another Fibonacci level.