The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 1.3950 with a target of 1.3434 – 1.3250. A sell signal: the price holds below 1.3950. Stop Loss: above 1.3950, Take Profit: 1.3434 – 1.3250.
- Alternative scenario: Breakout and consolidation above the level of 1.3950 will allow the pair to continue rising to the levels of 1.4124 – 1.4250. A buy signal: the level of 1.3950 is broken to the upside. Stop Loss: below 1.3950, Take Profit: 1.4124 – 1.4250.
Main Scenario
Consider short positions below the level of 1.3950 with a target of 1.3434 – 1.3250 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 1.3950 will allow the pair to continue rising to the levels of 1.4124 – 1.4250.
Analysis
An ascending fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, 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 A of (2) appears to have formed, an upward correction seems to have completed as wave B of (2), and wave C of (2) is in progress. The H4 time frame shows that the first wave of smaller degree i of C has presumably formed and the second wave ii of C is nearing completion as a local correction. If this presumption is correct, the USD/CAD pair will continue to decline to 1.3434 – 1.3250 after the correction ends. The level of 1.3950 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.4124 – 1.4250.
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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