USD/CAD has stabilized and has formed a Double Bottom pattern on the 1H chart. The pattern has 68% quality and 46% magnitude in the 46-bar period.
The pattern started when the pair rebounded from 1.0085 and slowed down at 1.0008, where the pair is currently trading. Pattern's resistance band is at 1.0021; patterns lower limit is around 0.9984—0.9981. Long traders, who expect that the pair will follow pattern's theoretical path and will break through pattern's resistance, could set the first target at the recent peak at 1.0010. If this level is breached, next targets could be at the pattern's resistance at 1.0022 and 3rd of August high at 1.0034.
Technical indicators on aggregate send strong sell signal on 4H time horizon indicating that the pair won't manage to break through pattern's resistance and will move towards parity level. The SWFX market sentiment shows that 55% of the traders expect such development as well. Short traders should focus on 7th of August low at 0.9996. If this level is breached, next targets could be at the daily pivot at 0.9987 and pattern's lower limits at around 0.9980.