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. On the H4 time frame, an upward correction appears to be developing as wave B of (2), with wave a of B currently unfolding. If this presumption is correct, USDCAD may rise to 1.4018 – 1.4168. The level of 1.3540 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 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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