The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.4200 with a target of 1.4800 – 1.5200. A buy signal: the price holds above 1.4200. Stop Loss: below 1.4170, Take Profit: 1.4800 – 1.5200.
- Alternative scenario: Breakout and consolidation below the level of 1.4200 will allow the pair to continue declining to the levels of 1.3970 – 1.3800. A sell signal: the level of 1.4200 is broken to the downside. Stop Loss: above 1.4230, Take Profit: 1.3970 – 1.3800.
Main Scenario
Consider long positions from corrections above the level of 1.4200 with a target of 1.4800 – 1.5200.
Alternative Scenario
Breakout and consolidation below the level of 1.4200 will allow the pair to continue declining to the levels of 1.3970 – 1.3800.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. On the daily chart, the fifth wave of smaller degree 5 of (1) is developing, with wave iii of 5 forming inside. Apparently, wave (iii) of iii is developing on the H4 chart. If this assumption is correct, the USDCAD pair will continue to rise to 1.4800 – 1.5200. The level of 1.4200 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3970 – 1.3800.
Price chart of USDCAD in real time mode
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