The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction has been completed, consider long positions above 1.4087 with a target of 1.4400–1.4570. A buy signal: the local correction ends and the price settles above 1.4087. Stop Loss: below 1.4045, Take Profit: 1.4400–1.4570.
- Alternative scenario: Breakout and consolidation below 1.4087 will allow the pair to continue declining to the levels of 1.3757–1.3548. A sell signal: the level of 1.4087 is broken to the downside. Stop Loss: above 1.4130, Take Profit: 1.3757–1.3548.
Main Scenario
Consider long positions above the level of 1.4087 with a target of 1.4400–1.4570 once the correction ends.
Alternative Scenario
Breakout and consolidation below 1.4087 will allow the pair to continue declining to the levels of 1.3757–1.3548.
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) is apparently still developing, with wave c of B unfolding as its part. On the H4 time frame, the fifth wave of smaller degree (v) of c is presumably developing. Within it, wave iii of (v) has formed and a local correction iv of (v) is nearing completion. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4400–1.4570 after the correction ends. The level of 1.4087 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3757–1.3548.
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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