The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.4481 with a target of 1.4117 – 1.3950. A sell signal: the level of 1.4481 is broken to the downside. Stop Loss: above 1.4550, Take Profit: 1.4117 – 1.3950.
- Alternative scenario: Breakout and consolidation above the level of 1.4481 will allow the pair to continue rising to the levels of 1.4800 – 1.5200. A buy signal: the level of 1.4481 is broken to the upside. Stop Loss: below 1.4410, Take Profit: 1.4800 – 1.5200.
Main scenario
Consider short positions from corrections below the level of 1.4481 with a target of 1.4117 – 1.3950.
Alternative scenario
Breakout and consolidation above the level of 1.4481 will allow the pair to continue rising to the levels of 1.4800 – 1.5200.
Analysis
The 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 complete on the daily chart, and the local correction is in progress as the fourth wave 4 of (5). Wave а of 4 appears to continue developing on the H4 time frame. If the presumption is correct, the USD/CAD pair will continue to drop to the levels of 1.4117 – 1.3950. The level of 1.4481 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4800 – 1.5200.
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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