A bullish breakout above the zone of 1.2770-1.2800 has been executed on July 15.
The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have pushed beyond this level three weeks ago.
However, a bearish corrective movement towards the level of 1.2750 (breakout level) was expected since USD/CAD bears managed to defend the resistance zone of 1.3400-1.3450 (Fibonacci Expansion 141% level) and 1.3280 (Fibonacci Expansion 100%).
Moreover, bearish persistence below 1.3270 (Fibonacci Expansion 100%) and 1.3075 (recent bottom) is needed to maintain enough bearish pressure to expose the next support level around 1.2910, and 1.2750 where long-term buy entries should be considered.
A good sell entry was suggested around the levels of 1.3400-1.3450 (Fibonacci Expansion 141% levels). S/L should be lowered to 1.3050 to secure our profits. T/P levels were placed at 1.3300,1.3220, and 1.3050 (all targets were achieved).
On the other hand, conservative traders should wait for further bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as a strong support level.
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