USDCAD bulls unable to capture the major Fibonacci resistance

Source: Forex Analysis

USDCAD made a new higher high above 1.3344 and briefly pushed above the major Fibonacci resistance at 1.3355. However bulls were not strong enough and price got rejected. This Fibonacci rejection is a bearish sign.

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Green rectangle – resistance area

USDCAD never managed to produce a daily close above the 61.8% Fibonacci retracement. The long upper candle tails in the daily candlesticks show the strength of the sellers. Price got rejected at the 1.3355 area and is now challenging the 1.32 support. Below 1.32 we look for support at 1.3120 where we find the lower boundary of the long-term bullish channel. Ideally bulls would pull back towards 1.3155 where we find the 61.8% Fibonacci retracement of the last leg up and then reverse to the upside.

The material has been provided by InstaForex Company – www.instaforex.com