The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3766 with a target of 1.4536–1.4788. A buy signal: the price holds above 1.3766. Stop Loss: below 1.3725, Take Profit: 1.4536–1.4788.
- Alternative scenario: Breakout and consolidation below the level of 1.3766 will allow the pair to continue declining to the levels of 1.3550–1.3065. A sell signal: the level of 1.3766 is broken to the downside. Stop Loss: above 1.3810, Take Profit: 1.3550–1.3065.
Main Scenario
Consider long positions from corrections above 1.3766 with a target of 1.4536–1.4788.
Alternative Scenario
Breakout and consolidation below 1.3766 will allow the pair to continue declining to the levels of 1.3550–1.3065.
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 C of (2) is presumably forming, within which wave iii of C of smaller degree is developing. On the H4 time frame, wave (iii) of iii is unfolding. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4536–1.4788. The level of 1.3766 is critical in this scenario as a breakout above it will enable the pair to continue declining to the levels of 1.3550–1.3065.
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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