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 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 Friday, 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 the USD/CAD bulls managed to push above the price level of 1.3100.
Yesterday, a valid SELL entry was suggested around the price level of 1.3270 (FE100%). It is already running in profits now.
A bearish breakdown of the recent support level at 1.3075 is mandatory to allow further bearish decline initially towards 1.2940.
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