The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions above the level of 1.3950 with a target of 1.4536–1.4788 after correction ends. A buy signal: the price holds above 1.3950 after the correction is complete. Stop Loss: below 1.3900, Take Profit: 1.4536–1.4788.
- Alternative scenario: Breakout and consolidation below the level of 1.3950 will allow the pair to continue declining to the levels of 1.3765–1.3550. A sell signal: the level of 1.3950 is broken to the downside. Stop Loss: above 1.4000, Take Profit: 1.3765–1.3550.
Main Scenario
Consider long positions above 1.3950 with a target of 1.4536–1.4788 after the correction ends.
Alternative Scenario
Breakout and consolidation below 1.3950 will allow the pair to continue declining to the levels of 1.3765–1.3550.
Analysis
On the weekly chart, an ascending fifth wave of larger degree 5 continues unfolding, 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 C of (2) is forming, within which wave iii of C of lower degree is underway. On the 4-hour time frame, wave (iii) of iii terminated and corrective wave (iv) of iii started to unfold. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4536–1.4788 after the correction is complete. The level of 1.3950 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3765–1.3550.
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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