Overview:
A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15 (highlighted in pale 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.
A 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 price level of 1.3270 (Fibonacci Expansion 100%) got exposed shortly after USD/CAD bulls managed to push above the price level of 1.3100.
On October 28, a valid sell entry was suggested around the level of 1.3270 (FE 100%). It is running in profits now. Target levels are located at 1.3075 and 1.2930.
A bearish breakdown of the support level at 1.3075 was mandatory to allow further bearish decline initially towards 1.2930.
Otherwise, another bullish visit towards the price level of 1.3270 (FE 100%) will be executed (which is the current scenario).
Trading recommendations:
Conservative traders should wait either to SELL the USD/CAD pair around 1.3270-1.3300 or BUY the pair around the recent breakout zone (1.2800-1.2750) as the breakout zone constitutes a strong support.
S/L should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.
The material has been provided by InstaForex Company - www.instaforex.com