Main scenario: consider short positions below the level of 1.3046 with a target of 1.2650 – 1.2540 once the correction is completed.
Alternative scenario: breakout and consolidation above the level of 1.3046 will allow the pair to continue rising to the levels of 1.3220 – 1.3316.
Analysis: the first wave of larger degree (1) of 5 is presumably developing on the daily chart, with wave 1 of (1) formed as its part. On the H4 chart, a descending correction is developing as the second wave 2 of (1), with wave b of 2 formed and wave c of 2 unfolding as its parts. Apparently, the first wave of smaller degree (i) of c has formed on the H1 chart, and a local correction is coming to its end as the second wave (ii) of c. Upon its completion, if the presumption is correct, the pair will continue falling to the levels of 1.2650 – 1.2540. The level of 1.3046 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3220 – 1.3316.
Price chart of USDCAD in real time mode
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