The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 1.3943 with a target of 1.3205 – 1.2981. A sell signal: if the price holds below 1.3943. Stop Loss: above 1.3980, Take Profit: 1.3205 – 1.2981.
- Alternative scenario: breakout and consolidation above the level of 1.3943 will allow the pair to continue rising to the levels of 1.4200 – 1.4400. A buy signal: once the level of 1.3943 is broken to the upside. Stop Loss: below 1.3900, Take Profit: 1.4200 – 1.4400.
Main scenario
Consider short positions from corrections below the level of 1.3943 with a target of 1.3205 – 1.2981.
Alternative scenario
Breakout and consolidation above the level of 1.3943 will allow the pair to continue rising to the levels of 1.4200 – 1.4400.
Analysis
The fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, with wave (1) of 5 formed and a bearish corrective wave (2) of 5 developing as its parts. On the daily time frame, wave А of (2) is unfolding, with wave of smaller degree i of A formed and a local corrective wave ii of А presumably completed as its parts. Apparently, wave (c) of ii is formed on the H4 time frame, within which wave v of (c) is completed. If the presumption is correct, the USDCAD will continue to drop to the levels of 1.3205 – 1.2981. The level of 1.3943 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4200 – 1.4400.
Price chart of USDCAD in real time mode
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