The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions below the level of 1.3658 with a target of 1.3205 – 1.2981. A sell signal: if the price holds below 1.3658. Stop Loss: above 1.3700, Take Profit: 1.3205 – 1.2981.
- Alternative scenario: breakout and consolidation above the level of 1.3658 will allow the pair to continue rising to the levels of 1.3823 – 1.3947. A buy signal: once the level of 1.3658 is broken to the upside. Stop Loss: below 1.3600, Take Profit: 1.3823 – 1.3947.
Main scenario
Consider short positions on corrections below 1.3658 with a target of 1.3205 – 1.2981 once the correction is completed.
Alternative scenario
A breakout and consolidation above the level of 1.3658 will allow the pair to continue rising to the levels of 1.3823 – 1.3947.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 formed as its part. The fifth wave of smaller degree 5 of (1) is completed on the daily time frame, and a bearish correction is developing as the second wave (2) of 5. Wave А of (2) appears to continue forming on the H4 time frame, with wave i of A and a local corrective wave ii of A formed as its parts. Wave iii of A may have started to develop. If this assumption is correct, the USDCAD pair will continue to fall to 1.3205 – 1.2981. The level of 1.3658 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3823 – 1.3947.
Price chart of USDCAD in real time mode
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