The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.3427 with a target of 1.4300 – 1.4800. A buy signal: the price stops declining and bounces upward from the level of 1.3427. Stop Loss: below 1.3350, Take Profit: 1.4300 – 1.4800.
- Alternative scenario: Breakout and consolidation below the level of 1.3427 will allow the pair to continue declining to the levels of 1.3300 – 1.3175. A sell signal: the level of 1.3427 is broken to the downside. Stop Loss: above 1.3485, Take Profit: 1.3300 – 1.3175.
Main Scenario
Consider long positions above the level of 1.3427 with a target of 1.4300 – 1.4800 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.3427 will allow the pair to continue declining to the levels of 1.3300 – 1.3175.
Analysis
The ascending fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of smaller degree 3 of (5) appears to have formed on the daily chart, and the local correction is nearing completion as the fourth wave 4 of (5). On the H4 time frame, wave c of 4 is likely forming, with the fifth wave of smaller degree (v) of c currently nearing completion. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4300 – 1.4800 after the correction ends. The level of 1.3427 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1.3300 – 1.3175.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of USDCAD in real time mode
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