The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3725 with a target of 1.3300–1.3111. A sell signal: the price holds below 1.3725. Stop Loss: above 1.3725, Take Profit: 1.3300–1.3111.
- Alternative scenario: Breakout and consolidation above 1.3725 will allow the pair to continue rising to the levels of 1.3928–1.4124. A buy signal: the level of 1.3725 is broken to the upside. Stop Loss: below 1.3725, Take Profit: 1.3928–1.4124.
Main Scenario
Consider short positions from corrections below the level of 1.3725 with a target of 1.3300–1.3111.
Alternative Scenario
Breakout and consolidation above the level of 1.3725 will allow the pair to continue rising to the levels of 1.3928–1.4124.
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 still in progress. The third wave of smaller degree iii of C has likely formed on the H4 time frame, and a local correction has been completed as the fourth wave iv of C. If this presumption is correct, USD/CAD will continue to decline to 1.3300–1.3111 in wave v of C. The level of 1.3725 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.3928–1.4124.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
