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 support level at 1.3075 is mandatory to allow further bearish decline at least towards 1.2930.
Otherwise, another bullish visit towards the price level of 1.3270 (FE 100%) will be expected.
Conservative traders should wait for bearish pullbacks towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as 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