The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3758 with a target of 1.3300–1.3111. A sell signal: the price holds below 1.3758. Stop Loss: above 1.3758, Take Profit: 1.3300–1.3111.
- Alternative scenario: Breakout and consolidation above the level of 1.3758 will allow the pair to continue rising to the levels of 1.3930–1.4124. A buy signal: the level of 1.3758 is broken to the upside. Stop Loss: below 1.3758, Take Profit: 1.3930–1.4124.
Main Scenario
Consider short positions from corrections below the level of 1.3758 with a target of 1.3300–1.3111.
Alternative Scenario
Breakout and consolidation above the level of 1.3758 will allow the pair to continue rising to the levels of 1.3930–1.4124.
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 been completed as wave B of (2), and wave C of (2) is still in progress. Apparently, the third wave of smaller degree iii of C has formed, a local correction has developed as the fourth wave iv of C, and the fifth wave v of C has started unfolding on the H4 chart. If this assumption is correct, the USD/CAD pair will continue to fall to 1.3300–1.3111. The level of 1.3758 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.3930–1.4124.
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
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