Since bulls pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market looked quite overbought. That is why the price failed to hold above 1.2650 – 1.2680 (previous highs) resulting in the formation of a Triple-top pattern.
Successive lower highs were established within the depicted consolidation zone enhancing the bearish side of the market.
Support levels around 1.2350 and 1.2300 (79.6% Fibonacci level) were broken after providing significant support for several weeks on the daily and weekly charts.
Daily fixation below 1.2300 cleared the way for the USD/CAD pair towards the levels of 1.2000 and 1.1940 (projection target of the recent range breakout and the depicted weekly uptrend).
That is why we expected these price levels to provide significant bullish SUPPORT. Bullish pullback is currently taking place.
The price zone of 1.2330-1.2350 remains significant intraday RESISTANCE to be watched at further retesting. This price zone will probably offer a low-risk sell entry.
Risky traders could have taken a suggested buy entry anywhere around 1.1950. S/L should be advanced to 1.2100 to secure some profits. T/P levels are projected at 1.2100, 1.2270, and 1.2320.
Conservative traders can wait for bullish pullback towards 1.2300-1.2340 for a low-risk sell entry. S/L should be placed above 1.2400.
T/P levels should be placed at 1.2220, 1.2100 and 1.1950.
The material has been provided by InstaForex Company – www.instaforex.com