The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.4160 with a target of 1.4800 – 1.5200. A buy signal: the level of 1.4160 is broken to the upside. Stop Loss: below 1.4100, Take Profit: 1.4800 – 1.5200.
- Alternative scenario: Breakout and consolidation below the level of 1.4160 will allow the pair to continue declining to the levels of 1.3950 – 1.3433. A sell signal: the level of 1.4160 is broken to the downside. Stop Loss: above 1.4220, Take Profit: 1.3950 – 1.3433.
Main Scenario
Consider long positions above the level of 1.4160 with a target of 1.4800 – 1.5200 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.4160 will allow the pair to continue declining to the levels of 1.3950 – 1.3433.
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) is formed and a correction finished developing as fourth second wave 4 of (5) on the daily chart. The fifth wave 5 of (5) has started unfolding. Wave i of 5 is apparently formed on the H4 chart, and a local correction is developing as wave ii of 5. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4800 – 1.5200 after the correction ends. The level of 1.4160 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3950 – 1.3433.
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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