The article covers the following subjects:
Key takeaways
- Main scenario: consider short positions from a correction below the level of 2370.00 with a target of 2218.46 – 2161.56. A sell signal: after the level of 2370.00 is broken. Stop Loss: 2450.00, Take Profit: 2161.56.
- Alternative scenario: breakout and consolidation above the level of 2370.00 will allow the pair to continue rising to the levels of 2500.00 – 2560.00. A buy signal: after the level of 2370.00 is broken. Stop Loss: 2300.00, Take Profit: 2560.00.
Main scenario
Consider long positions above the level of 1.3428 with a target of 1.4000 – 1.4200 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 1.3428 will allow the pair to continue declining to the levels of 1.3166 – 1.2735.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. On the daily chart, wave 5 of (1) is developing, with wave iii of 5 forming inside. A local correction appears to be unfolding on the H4 time frame as the fourth wave of smaller degree (iv) of iii. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4000 – 1.4200 after the correction ends. The level of 1.3428 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.3166 – 1.2735.
Price chart of USDCAD in real time mode
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