The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3540 with a target of 1.4018 – 1.4168. A buy signal: the price holds above 1.3540. Stop Loss: below 1.3480, Take Profit: 1.4018 – 1.4168.
- Alternative scenario: Breakout and consolidation below the level of 1.3540 will allow the pair to continue declining to the levels of 1.3425 – 1.3108. A sell signal: the level of 1.3540 is broken to the downside. Stop Loss: above 1.3600, Take Profit: 1.3425 – 1.3108.
Main Scenario
Consider long positions from corrections above the level of 1.3540 with a target of 1.4018 – 1.4168.
Alternative Scenario
Breakout and consolidation below the level of 1.3540 will allow the pair to continue declining to the levels of 1.3425 – 1.3108.
Analysis
The ascending fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 formed as its part. Apparently, the bearish correction is unfolding as the second wave (2) of 5 on the daily chart, with wave A of (2) completed as its part. The upward wave B of (2) has started unfolding as part of the correction. On the H4 time frame, wave a of B is presumably developing, with wave (i) of a completed and wave (ii) of a now nearing completion as a local correction. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4018 – 1.4168. The level of 1.3540 is critical in this scenario, as a breakout below it would allow the pair to decline to 1.3425 – 1.3108.
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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