The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.3624 with a target of 1.4100 – 1.4300. A buy signal: the price holds above 1.3624. Stop Loss: below 1.3600, Take Profit: 1.4100 – 1.4300.
- Alternative scenario: Breakout and consolidation below the level of 1.3624 will allow the pair to continue declining to the levels of 1.3418 – 1.3205. A sell signal: the level of 1.3624 is broken to the downside. Stop Loss: above 1.3650, Take Profit: 1.3418 – 1.3205.
Main Scenario
Consider long positions above the level of 1.3624 with a target of 1.4100 – 1.4300 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.3624 will allow the pair to continue declining to the levels of 1.3418 – 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. The fifth wave of smaller degree 5 of (1) continues developing on the daily chart, with a correction completed as the fourth wave iv of 5 and wave v of 5 developing. Apparently, wave (i) of v is formed and a local corrective wave (ii) of v is unfolding on the H4 chart. If the presumption is correct, USDCAD will continue to rise to the levels of 1.4100 – 1.4300 after the correction ends. The level of 1.3624 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3418 – 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.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
