The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 1.3638 with a target of 1.3205 – 1.2981. A sell signal: the price holds below 1.3638. Stop Loss: above 1.3700, Take Profit: 1.3205 – 1.2981.
- Alternative scenario: breakout and consolidation above the level of 1.3638 will allow the pair to continue rising to the levels of 1.3755 – 1.3947. A buy signal: once the level of 1.3638 is broken to the upside. Stop Loss: below 1.3575, Take Profit: 1.3755 – 1.3947.
Main scenario
Consider short positions from corrections below the level of 1.3638 with a target of 1.3205 – 1.2981.
Alternative scenario
Breakout and consolidation above the level of 1.3638 will allow the pair to continue rising to the levels of 1.3755 – 1.3947.
Analysis
The fifth wave of larger degree 5 presumably continues unfolding on the daily chart, with wave (1) of 5 formed and a bearish corrective wave (2) of 5 developing as its parts. Wave А of (2) is developing on the H4 time frame, with the third wave of smaller degree iii of A unfolding as its part. On the H1 time frame, a local corrective wave (ii) of iii appears to have formed. If the presumption is correct, USDCAD will continue declining in wave (iii) of iii to 1.3205 – 1.2981. The level of 1.3638 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3755 – 1.3947.
Price chart of USDCAD in real time mode
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