Overview:

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.

Trading recommendations:

A counter-trend sell entry was suggested around the levels of 1.3400-1.3450 (Fibonacci Expansion 141% levels). S/L should be lowered to 1.3200 to secure some profits. T/P levels were placed at 1.3300,1.3220 (both were reached) and 1.3050 (yet to come).

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 constitutes 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.