The article covers the following subjects:
Major Takeaways
- Main scenario: Breakout and consolidation above the level of 1.4295 will allow the pair to continue rising to the levels of 1.4800 – 1.5200. A buy signal: the level of 1.4295 is broken to the upside. Stop Loss: below 1.4200, Take Profit: 1.4800 – 1.5200.
- Alternative scenario: After the correction ends, consider short positions below the level of 1.4295 with a target of 1.3970 – 1.3800. A sell signal: the price holds below 1.4295. Stop Loss: above 1.4350, Take Profit: 1.3970 – 1.3800.
Main Scenario
Consider long positions from corrections above the level of 1.4295 with a target of 1.4800 – 1.5200.
Alternative Scenario
Breakout and consolidation below the level of 1.4295 will allow the pair to continue declining to the levels of 1.3970 – 1.3800.
Analysis
An ascending fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (5) of 5 forming as its part. The third wave of smaller degree 3 of (5) is developing on the daily chart, with wave iii of 3 continuing forming as its part. On the H4 time frame, apparently a local correction finished developing as wave (iv) of iii, and wave (v) of iii started forming. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4800 – 1.5200. The level of 1.4295 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3970 – 1.3800.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
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