A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15.
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 141.4% Fibonacci Expansion was roughly located.
Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed to maintain enough bearish pressure to expose the next support levels around 1.2910 and 1.2750 where long-term buy entries should be considered.
On the other hand, the price zone of 1.3075-1.3100 constitutes an intraday resistance to be watched for intraday sell entries.
As anticipated, it offered a valid sell position last Tuesday being re-visited again this week.
Current levels will probably offer a valid sell entry again, if enough bearish rejection is expressed by the end of the day (Daily candlestick closure below 1.3075).
On the other hand, daily persistence above 1.3100 exposes the price level of 1.3270 (Fibonacci Expansion 100%) again.
Generally, the USD/CAD pair remains trapped between the levels of 1.2800 and 1.3100 until a breakout in either direction occurs.
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 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