USDCAD: Elliott wave analysis and forecast for 17.12.21 – 24.12.21

Main scenario: consider long positions from corrections above the level of 1.2610 with a target of 1.3166 – 1.3382.

Alternative scenario: breakout and consolidation below the level of 1.2610 will allow the pair to continue declining to the levels of 1.2493 – 1.2384.

Analysis: A descending correction appears to have formed as the fourth wave 4 of a larger degree in the daily timeframe, with wave (С) of 4 completed inside, and an ascending wave 5 has started unfolding. In the H4 chart, a downward correction has completed as wave 2 of (1) of 5 and the third wave 3 of (1) has started developing. The third wave of a smaller degree iii of 3 must be developing in the H1 chart, where wave (i) of iii completed and corrective wave (ii) of iii is about to finish. If the presumption is correct, the pair will continue to rise to the levels of 1.3166 – 1.3382. The level of 1.2610 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2493 – 1.2384. 

Price chart of USDCAD in real time mode

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