Main scenario: consider long positions from corrections above the level of 1.3606 with a target of 1.4000 – 1.4200.
Alternative scenario: breakout and consolidation below the level of 1.3606 will allow the pair to continue declining to the levels of 1.3352 – 1.3168.
Analysis: the fifth wave of larger degree 5 presumably continues developing on the weekly time frame, with wave (1) of 5 unfolding as its part. The fifth wave of smaller degree 5 of (1) is forming on the daily time frame, with wave iii of 5 continuing developing within. Apparently, the third wave of smaller degree (iii) of iii is forming on the H4 time frame, within which wave v of (iii) is unfolding. If this assumption is correct, the USDCAD pair will continue to rise to 1.4000 – 1.4200. The level of 1.3606 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.3352 – 1.3168.
Price chart of USDCAD in real time mode
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