The article covers the following subjects:
Key takeaways
- Main scenario: consider short positions from corrections below the level of 1.3755 with a target of 1.3352 – 1.3166. A sell signal: after the level of 1.3755 is broken. Stop Loss: 1.3850, Take Profit: 1.3166.
- Alternative scenario: breakout and consolidation above the level of 1.3755 will allow the pair to continue rising to the levels of 1.4000 – 1.4200. A buy signal: after the level of 1.3755 is broken. Stop Loss: 1.3650, Take Profit: 1.4200.
Main scenario
Consider short positions from corrections below the level of 1.3755 with a target of 1.3352 – 1.3166.
Alternative scenario
Breakout and consolidation above the level of 1.3755 will allow the pair to continue rising to the levels of 1.4000 – 1.4200.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 formed as its part. On the daily time frame, a local correction is developing as wave (2) of 5, with wave С of (2) forming inside. Apparently, the third wave of smaller degree iii of C is developing on the H4 chart, with wave (iii) of iii unfolding as its part. If the presumption is correct, the USDCAD will continue to drop to the levels of 1.3352 – 1.3166. The level of 1.3755 is critical in this scenario as a breakout will allow the pair to continue rising to the levels of 1.4000 – 1.4200.
Price chart of USDCAD in real time mode
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