The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 1.3788 with a target of 1.3352 – 1.3166. A sell signal: after the level of 1.3788 is broken. Stop Loss: 1.3850. Take Profit: 1.3166.
- Alternative scenario: breakout and consolidation above the level of 1.3788 will allow the pair to continue rising to the levels of 1.4000 – 1.4200. A buy signal: after the level of 1.3788 is broken. Stop Loss: 1.3700. Take Profit: 1.4200.
Main scenario
Consider short positions from corrections below the level of 1.3788 with a target of 1.3352 – 1.3166.
Alternative scenario
Breakout and consolidation above the level of 1.3788 will allow the pair to continue rising to the levels of 1.4000 – 1.4200.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the daily chart, with wave (1) of 5 formed and a corrective wave (2) of 5 unfolding as its parts. Wave C of (2) is forming on the H4 chart, with the third wave of smaller degree iii of C unfolding as its part. Apparently, a local corrective wave (ii) of iii is nearing completion on the H1 time frame. Upon its completion, if the presumption is correct, the USDCAD will continue falling to 1.3352 – 1.3166. The level of 1.3788 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4000 – 1.4200.
Price chart of USDCAD in real time mode
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