The article covers the following subjects:
Highlights and key points
- Main scenario: after the correction ends, consider short positions 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 1.4000, 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 1.3880, Take Profit: 1.4200 – 1.4400.
Main scenario
Consider short positions below the level of 1.3943 with a target of 1.3205 – 1.2981 once the correction is completed.
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 nearing completion as its parts. Apparently, wave (c) of ii is coming to an end on the H4 time frame, within which wave v of (c) is unfolding. If the presumption is correct, the USDCAD pair will continue falling to 1.3205 – 1.2981 after the correction is over. 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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