The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3975 with a target of 1.4300 – 1.4500. A buy signal: the price holds above 1.3975. Stop Loss: below 1.3940, Take Profit: 1.4300 – 1.4500.
- Alternative scenario: Breakout and consolidation below the level of 1.3975 will allow the pair to continue declining to the levels of 1.3800 – 1.3711. A sell signal: the level of 1.3975 is broken to the downside. Stop Loss: above 1.4010, Take Profit: 1.3800 – 1.3711.
Main Scenario
Consider long positions from corrections above the level of 1.3975 with a target of 1.4300 – 1.4500.
Alternative Scenario
Breakout and consolidation below the level of 1.3975 will allow the pair to continue declining to the levels of 1.3800 – 1.3711.
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) is developing on the daily chart, within which a correction is completed as the fourth wave iv of 5. Apparently, the fifth wave v of 5 is developing on the H4 chart, with wave (iii) of v formed and a local corrective wave (iv) of v presumably completed as its parts. If the presumption is correct, the USD/CAD pair will continue to rise in wave (v) of v of 5 to the levels of 1.4300 – 1.4500. The level of 1.3975 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3800 – 1.3711.
Price chart of USDCAD in real time mode
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