The bullish breakout off the depicted channel allowed the bulls to retest the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was previously formed.
One month ago, the USD/CAD pair failed to maintain daily closure above price level of 1.0950, then a double-top reversal pattern was expressed at retesting last week.
As we mentioned before, bearish rejection was anticipated after such a long bullish rally that originated off 1.0650 and 1.0710.
A valid SELL position was suggested at retesting which took place last week. The initial bearish target was located around 1.0825, then 1.0770 (considerable Intraday support).
The price zone of 1.0990-1.1020 still offers a valid low-risk SELL entry as we mentioned last week.
As long as the recent top at 1.1050 remains unbroken, our sell position remains valid.
Daily fixation above 1.0950 (50% Fibonacci level) enabled the bulls to shoot towards 1.1025 ( 61.8% Fibonacci level ) where bearish rejection is anticipated.
On the other hand, daily closure below the price zone of 1.0950 confirms a long-term double-top pattern (on the daily chart) with its projection target located at 1.0770.
The material has been provided by InstaForex Company - www.instaforex.com
