The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.4230 with a target of 1.4800 – 1.5200. A buy signal: the price holds above 1.4230. Stop Loss: below 1.4180, Take Profit: 1.4800 – 1.5200.
- Alternative scenario: Breakout and consolidation below the level of 1.4230 will allow the pair to continue declining to the levels of 1.3950 – 1.3433. A sell signal: the level of 1.4230 is broken to the downside. Stop Loss: above 1.4280, Take Profit: 1.3950 – 1.3433.
Main Scenario
Consider long positions from corrections above the level of 1.4230 with a target of 1.4800 – 1.5200.
Alternative Scenario
Breakout and consolidation below the level of 1.4230 will allow the pair to continue declining to the levels of 1.3950 – 1.3433.
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 formed and a correction finished developing as the fourth wave 4 of (5) on the daily chart. The fifth wave 5 of (5) is unfolding. The H4 time frame suggests that wave i of 5 and the local corrective wave ii of 5 are completed, and wave iii of 5 has started unfolding. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4800 – 1.5200. The level of 1.4230 is critical in this scenario, as its breakout will enable the pair to continue declining to the levels of 1.3950 – 1.3433.
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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