The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3695 with a target of 1.4124–1.4300. A buy signal: the price holds above 1.3695. Stop Loss: below 1.3655, Take Profit: 1.4124–1.4300.
- Alternative scenario: Breakout and consolidation below 1.3695 will allow the pair to continue declining to the levels of 1.3525–1.3436. A sell signal: the 1.3695 level is broken to the downside. Stop Loss: above 1.3735, Take Profit: 1.3525–1.3436.
Main Scenario
Consider long positions above the level of 1.3695 with a target of 1.4124–1.4300 once the correction ends.
Alternative Scenario
Breakout and consolidation below 1.3695 will allow the pair to continue declining to the levels of 1.3525–1.3436.
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 has also finished developing in the form of the second wave (2) of 5. On the daily timeframe, the third wave (3) of 5 has likely started unfolding, with the first wave of smaller degree 1 of (3) still developing as its part. Wave iii of 1 has likely formed on the H4 chart. A local correction is developing as wave iv of 1. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4124–1.4300 after the correction ends. The level of 1.3695 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3525–1.3436.
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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