The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.4247 with a target of 1.3900–1.3820. A sell signal: the price holds below 1.4247. Stop Loss: above 1.4290, Take Profit: 1.3900–1.3820.
- Alternative scenario: Breakout and consolidation above the level of 1.4247 will allow the pair to continue rising to the levels of 1.4400–1.4540. A buy signal: the level of 1.4247 is broken to the upside. Stop Loss: below 1.4205, Take Profit: 1.4400–1.4540.
Main Scenario
Consider short positions from corrections below the level of 1.4247 with a target of 1.3900–1.3820.
Alternative Scenario
Breakout and consolidation above 1.4247 will allow the pair to continue rising to the levels of 1.4400–1.4540.
Analysis
On the weekly time frame, the ascending fifth wave of larger degree 5 is presumably continuing to develop. Within it, wave (1) of 5 has formed, the 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. A local correction is unfolding as wave iv of 1 on the H4 chart. If this assumption is correct, USD/CAD will continue to decline to 1.3900–1.3820. The level of 1.4247 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.4400–1.4540.
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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