Overview:
A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15 (highlighted in pink).
The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls moved further above the resistance level, which was bypassed on September 23.
Significant bearish rejection was observed around 1.3450 where the 141.4% Fibonacci Expansion was roughly located.
Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed. This applied enough bearish pressure to expose the next support levels around 1.2910 and 1.2750 where long-term buy entries were suggested.
On October 23, daily closure above 1.3100 was achieved. This enhanced the bullish side of the market.
The level of 1.3270 (Fibonacci Expansion 100%) got exposed shortly after USD/CAD bulls managed to push above the level of 1.3100.
On October 28, a valid sell entry was suggested around the level of 1.3270 (FE 100%). Target levels are located at 1.3075 and 1.2930.
A bearish breakout below the support level at 1.3075 was mandatory to allow further bearish decline towards 1.2930. However, an evident bullish rejection was expressed around this level instead.
Hence, another bullish visit towards the level of 1.3270 (FE 100%) is being executed as anticipated in the previous articles.
A price action should be watched around the price level of 1.3270 on a daily basis, as a daily breakout above 1.3300 directly exposes the next resistance level at 1.3450 which corresponds to Fibonacci Expansion 141.0%.
Trading recommendations:
Risky traders can sell the USD/CAD pair around 1.3270-1.3300 (considered a risky trade as the recent weekly candlestick suggests more bullish advancement).
Conservative traders should wait to buy the pair around the recent breakout zone (1.2800-1.2750) as the breakout zone constitutes a strong support.
The material has been provided by InstaForex Company - www.instaforex.com