The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.4141 with a target of 1.3570 – 1.3432. A sell signal: the price holds below 1.4141. Stop Loss: above 1.4141, Take Profit: 1.3570 – 1.3432.
- Alternative scenario: Breakout and consolidation above the level of 1.4141 will allow the pair to continue rising to the levels of 1.4240 – 1.4316. A buy signal: the level of 1.4141 is broken to the upside. Stop Loss: below 1.4141, Take Profit: 1.4240 – 1.4316.
Main Scenario
Consider short positions from corrections below the level of 1.4141 with a target of 1.3570 – 1.3432.
Alternative Scenario
Breakout and consolidation above the level of 1.4141 will allow the pair to continue rising to the levels of 1.4240 – 1.4316.
Analysis
An ascending fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, with wave (1) of 5 formed as its part. A bearish correction is developing in the form of the second wave (2) of 5. On the daily time frame, wave A of (2) appears to have formed, and an upward correction seems to have completed as wave B of (2). Apparently, wave C of (2) started developing on the H4 time frame, with the counter-trend first wave of smaller degree (i) of i of C completed as its part. If this assumption is correct, the USD/CAD pair will continue to fall to 1.3570 – 1.3432 once a local correction finishes developing as the second wave (ii) of i of C. The level of 1.4141 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4240 – 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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