The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions with a target of 1.3192 – 1.2981. A sell signal: after the correction ends below 1.3950. Stop Loss: 1.3950, Take Profit: 1.3192 – 1.2981.
- Alternative scenario: breakout and consolidation above the level of 1.3950 will allow the pair to continue rising to the levels of 1.4200 – 1.4350. A buy signal: once the level of 1.3950 is broken to the upside. Stop Loss: below 1.3920, Take Profit: 1.4200 – 1.4350.
Main scenario
Consider short positions below the level of 1.3950 with a target of 1.3192 – 1.2981 once the correction is completed.
Alternative scenario
Breakout and consolidation above the level of 1.3950 will allow the pair to continue rising to the levels of 1.4200 – 1.4350.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 formed as its part. The fifth wave of smaller degree 5 of (1) is completed on the daily time frame, and a bearish correction is developing as the second wave (2) of 5. Apparently, wave А of (2) is developing on the H4 time frame, with wave i of A formed as its part. If this assumption is correct, the USDCAD pair will continue to fall to 1.3192 – 1.2981 after a local correction ii of A is completed. The level of 1.3950 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4200 – 1.4350.
Price chart of USDCAD in real time mode
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