Overview:
A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15 (highlighted in blue).
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. Besides, it 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 were 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.
Another bullish visit towards the level of 1.3270 (FE 100%) was initiated two weeks ago. A temporary bullish breakout above 1.3300 has been seen on the chart two weeks ago.
Daily persistence above 1.3300 exposes the next resistance level of 1.3450 (Fibonacci Expansion 141.0%) where a valid SELL entry can be offered.
Trading recommendations:
Traders should wait for an obvious bearish closure below 1.3250 (FE 100%) to sell the USD/CAD pair. S/L should be placed above 1.3370.
Initial T/P levels should be placed at 1.3150 and 1.3080.
The material has been provided by InstaForex Company - www.instaforex.com