Main scenario: consider short positions from corrections below the level of 1.2500 with a target of 1.2250 – 1.2150.
Alternative scenario: breakout and consolidation above the level of 1.2500 will allow the pair to continue rising to the levels of 1.2647 – 1.2773.
Analysis: a descending correction appears to have formed as the fourth wave 4 of larger degree on the daily chart, with wave (С) of 4 completed and wave 5 unfolding inside. H4 chart: wave 1 of (1) of 5 is formed, and a downward correction is developing as wave 2 of (1) of 5, with wave c of 2 unfolding as part of it. Apparently, the third wave of smaller degree (iii) of c has finished forming on the H1 chart, and a corrective wave (iv) of c has started developing. If the presumption is correct, the pair will continue falling to the levels of 1.2250 – 1.2150 after the corrective wave (iv) of c is formed. The level of 1.2500 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.2647 – 1.2773.
Price chart of USDCAD in real time mode
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