The article covers the following subjects:
Major Takeaways
- Main scenario: once the correction has been completed, consider short positions below the level of 1.4050 with a target of 1.3548–1.3400. A sell signal: the local correction ends and the price holds below 1.4050. Stop Loss: above 1.4090, Take Profit: 1.3548–1.3400.
- Alternative scenario: Breakout and consolidation above the level of 1.4050 will allow the pair to continue rising to the levels of 1.4250–1.4417. A buy signal: the level of 1.4050 is broken to the upside. Stop Loss: below 1.4010, Take Profit: 1.4250–1.4417.
Main Scenario
Consider short positions below 1.4050 with a target of 1.3548–1.3400 once the correction is completed.
Alternative Scenario
Breakout and consolidation above 1.4050 will allow the pair to continue rising to the levels of 1.4250–1.4417.
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 continues developing in the form of the second wave (2) of 5. On the daily time frame, wave B of (2) has presumably been completed, and a descending wave C of (2) is unfolding. On the H4 chart, the first wave of smaller degree i of C appears to have formed, and a local correction is developing as the second wave ii of C. If this assumption is correct, USD/CAD will continue to decline to 1.3548–1.3400 after the local correction ends. The level of 1.4050 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.4250–1.4417.
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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