The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.4805 with a target of 1.4117 – 1.3950. A sell signal: the level of 1.4805 is broken to the downside. Stop Loss: above 1.4850, Take Profit: 1.4117 – 1.3950.
- Alternative scenario: Breakout and consolidation above the level of 1.4805 will allow the pair to continue rising to the levels of 1.5200 – 1.5500. A buy signal: the price holds above 1.4805. Stop Loss: below 1.4750, Take Profit: 1.5200 – 1.5500.
Main Scenario
Consider short positions from corrections below the level of 1.4805 with a target of 1.4117 – 1.3950.
Alternative Scenario
Breakout and consolidation above the level of 1.4805 will allow the pair to continue rising to the levels of 1.5200 – 1.5500.
Analysis
The ascending fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of smaller degree 3 of (5) is formed on the daily chart, and the local correction has started developing as the fourth wave 4 of (5). Apparently, wave a of 4 is unfolding on the H4 chart. If this assumption is correct, the USD/CAD pair will continue to decline to 1.4117 – 1.3950. The level of 1.4805 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.5200 – 1.5500.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDCAD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
