The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3984 with a target of 1.3570 – 1.3434. A sell signal: the price holds below 1.3984. Stop Loss: above 1.4020, Take Profit: 1.3570 – 1.3434.
- Alternative scenario: Breakout and consolidation above the level of 1.3984 will allow the pair to continue rising to the levels of 1.4124 – 1.4316. A buy signal: the level of 1.3984 is broken to the upside. Stop Loss: below 1.3950, Take Profit: 1.4124 – 1.4316.
Main scenario
Consider short positions from corrections below the level of 1.3984 with a target of 1.3570 – 1.3434.
Alternative scenario
Breakout and consolidation above the level of 1.3984 will allow the pair to continue rising to the levels of 1.4124 – 1.4316.
Analysis
A bullish wave of larger degree 5 presumably continues unfolding on the weekly chart. Within it, wave (1) of 5 has formed and a bearish corrective wave (2) of 5 is developing. On the daily time frame, wave A of (2) appears to have formed, and an upward correction B of (2) seems to have completed. Apparently, wave C of (2) is developing on the H4 time frame, with a counter-trend wave of smaller degree (i) of i of C nearing completion as its part. If this assumption is correct, the USD/CAD pair will continue to fall to 1.3570 – 1.3434 once a local correction (ii) of i of C finishes developing. The level of 1.3984 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.4124 – 1.4316.
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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