On May 16, a bullish pullback towards 1.3000 (61.8% Fibonacci level) was expected to offer a valid signal to sell the USD/CAD pair. However, a lack of a significant bearish rejection was manifested during recent consolidations.
On May 18, temporary bullish fixation above 1.3000 (61.8% Fibonacci level) opened the way towards the 1.3180 level where significant bearish pressure was originated.
Bearish persistence below 1.3000-1.2970 (61.8% Fibonacci level) was needed to enhance bearish momentum in the market.
However, recent signs of bullish recovery were manifested around the price level of 1.2650 on June 9.
Daily fixation above 1.2980 (61.8% Fibonacci level) opens the way towards the price level of 1.3300 (50% Fibonacci level) where price action should be watched for bearish rejection.
However, significant bearish rejection was expressed around 1.3190 before further bullish advance towards 1.3300 could take place.
That's why, conservative traders should consider the current daily fixation below 1.3000 as a valid SELL entry. Initial T/P levels should be located at 1.2800 and 1.2700.
The material has been provided by InstaForex Company - www.instaforex.com