The article covers the following subjects:
Highlights and key points
- Main scenario: once the correction ends, consider long positions above the level of 1.3623 with a target of 1.4100 – 1.4200. A buy signal: if the price holds above 1.3623. Stop Loss: below 1.3570, Take Profit: 1.4100 – 1.4200.
- Alternative scenario: breakout and consolidation below the level of 1.3623 will allow the pair to continue declining to the levels of 1.3420 – 1.3205. A sell signal: once the level of 1.3623 is broken to the downside. Stop Loss: above 1.3670, Take Profit: 1.3420 – 1.3205.
Main scenario
Consider long positions above the level of 1.3623 with a target of 1.4100 – 1.4200 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 1.3623 will allow the pair to continue declining to the levels of 1.3420 – 1.3205.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. Wave 5 of (1) is developing on the daily chart, within which the third wave of smaller degree iii of 5 is formed and a correction is completed as the fourth wave iv of 5. Apparently, the fifth wave v of 5 is developing on the H4 time frame, with the wave (i) of v formed inside. If the presumption is correct, the USDCAD pair will continue to rise to 1.4100 – 1.4200 once a local correction finishes developing as wave (ii) of v. The level of 1.3623 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3420 – 1.3205.
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. 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 2004/39/EC.
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