Overview:

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 have moved further above this resistance level faced 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 level of 1.3075 constitutes acting as intraday resistance to be watched for intraday sell entries.

It offered a valid sell position at retesting which took place on previous Tuesday.

This week, the market has pushed back again towards the USD/CAD intraday supply zone at 1.3050-1.3075 which may offer another SELL entry if enough bearish rejection is expressed today.

Generally, the market remains trapped between the price levels of 1.2800 and 1.3075 until a breakout occurs in either direction.

Trading recommendations:

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.