The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.3592 with a growth target of 1.4000 – 1.4200. A buy signal: after the level of 1.3592 is broken. Stop Loss: below 1.3500, Take Profit: from 1.4000 to 1.4200.
- Alternative scenario: breakout and consolidation below the level of 1.3592 will allow the pair to continue declining to the levels of 1.3352 – 1.3166. A sell signal: after the level of 1.3592 is broken. Stop Loss: above 1.3650, Take Profit: 1.3352 – 1.3166.
Main scenario
Consider long positions from corrections above the level of 1.3592 with a target of 1.4000 – 1.4200.
Alternative scenario
Breakout and consolidation below the level of 1.3592 will allow the pair to continue declining to the levels of 1.3352 – 1.3166.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. A local correction has finished developing as the fourth wave 4 of (1) on the daily chart, and the fifth wave 5 of (1) is unfolding. Apparently, the fifth wave of smaller degree v of 5 continues developing on the H4 time frame. If this assumption is correct, the USDCAD pair will continue to rise to 1.4000 – 1.4200. The level of 1.3592 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.3352 – 1.3166.
Price chart of USDCAD in real time mode
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