Source: Forex Analysis
Since April 2016, the USD/CAD pair has been trending-up within the depicted ascending channel.
In December 2016, a bullish breakout above 1.3300 (50% Fibonacci level) was expected to allow a further advance toward 1.3700-1.3750 (the upper limit of the depicted channel).
However, significant bearish rejection was expressed around 1.3580 (recent established top).
During the bearish pullback the price level of 1.3300 (50% Fibonacci Level) failed to provide enough support for the pair.
This allowed further bearish movement toward the price level of 1.2970 (61.8% Fibonacci level) where a valid BUY entry was offered in February 2017.
This week, the current bullish breakout above 1.3300 (50% Fibonacci Level) enhanced further bullish advance towards 1.3440 and 1.3550.
The next bullish target would be located around 1.3800 (upper limit of the depicted channel) if the pair maintains bullish trading above 1.3550.
The material has been provided by InstaForex Company – www.instaforex.com