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 Fibonacci level, which was previously breached to the upside on September 23 and recently on November 12.
Significant bearish rejection has been observed around 1.3450 (141.4% Fibonacci Expansion).
Later on October 1, bearish closure below 1.3270 (Fibonacci Expansion 100%) took place. This exposes the next support levels around 1.2910 and 1.2750 where long-term buy entries were suggested.
A bearish breakout below the support level of 1.3075 was mandatory to allow the further bearish decline towards 1.2930. However, an evident bullish rejection was expressed around this level.
Another bullish visit to the level of 1.3270 (FE 100%) was initiated on November 4. A bullish breakout above 1.3300 was performed again on November 13.
Since last month, the USD/CAD pair has been moving sideways (ranging between 1.3300 and 1.3430).
Daily fixation above 1.3300 exposes the next resistance level at 1.3450 (Fibonacci Expansion 141.0%) where a valid sell entry can be offered again.
On the other hand, a bearish breakdown below 1.3300 (FE 100% and the depicted short-term uptrend) is needed to enhance the bearish side of the market again.
Trading recommendations:
A valid sell entry can be offered at retesting of the price level of 1.3450 (Fibonacci Expansion 141.0%) which is being tested today. S/L should be located above 1.3530.
On the other hand, conservative traders should wait for an obvious bearish closure below 1.3250 (FE 100% and a short-term uptrend) to sell the USD/CAD pair. S/L should be placed above 1.3300. Initial T/P levels should be placed at 1.3150 and 1.3080.
The material has been provided by InstaForex Company - www.instaforex.com