Main scenario: consider short positions below the level of 1.2540 with a target of 1.1850 – 1.1700 once correction is completed.
Alternative scenario: breakout and consolidation above the level of 1.2540 will allow the pair to continue rising to the levels of 1.2708 – 1.2873.
Analysis: wave (С) of 4 of larger degree continues developing on the daily time frame, with the third wave 3 of (C) formed inside. The fifth wave v of 3 finished forming on the H4 time frame, with wave (v) of v completed inside. On the H1 time frame, apparently, a local correction has started developing in the form of the fourth wave 4 of (C). If the presumption is correct, the pair will continue to fall to the levels of 1.1850 – 1.1700 after correction. The level of 1.2540 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.2708 – 1.2873.
Price chart of USDCAD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.