The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 1.3900 with a target of 1.4250–1.4400. A buy signal: the price holds above 1.3900. Stop Loss: below 1.3860, Take Profit: 1.4250–1.4400.
- Alternative scenario: Breakout and consolidation below the level of 1.3900 will allow the pair to continue declining to the levels of 1.3820–1.3722. A sell signal: the level of 1.3900 is broken to the downside. Stop Loss: above 1.3940, Take Profit: 1.3820–1.3722.
Main scenario
Consider long positions from corrections above 1.3900 with a target of 1.4250–1.4400.
Alternative scenario
Breakout and consolidation below 1.3900 will allow the pair to continue declining to the levels of 1.3820–1.3722.
Analysis
On the weekly time frame, an ascending wave of larger degree 5 is presumably continuing to develop. Within it, wave (1) of 5 has formed, a downward corrective wave (2) of 5 has been completed, and wave (3) of 5 is currently developing. The first counter-trend wave of smaller degree 1 of (3) appears to be developing on the daily chart, with wave iii of 1 completed as its part. On the H4 time frame, a local correction iv of 1 has likely formed, and wave v of 1 is now unfolding. If the presumption is correct, USD/CAD will continue to rise to 1.4250–1.4400. The level of 1.3900 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3820–1.3722.
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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