The article covers the following subjects:
Major Takeaways
- Main scenario: consider long positions from corrections above the level of 1.3522 with a target of 1.4124–1.4300. A buy signal: the price holds above 1.3522. Stop Loss: below 1.3485, Take Profit: 1.4124–1.4300.
- Alternative scenario: Breakout and consolidation below 1.3522 will allow the pair to continue declining to the levels of 1.3436–1.3111. A sell signal: the 1.3522 level is broken to the downside. Stop Loss: above 1.3580, Take Profit: 1.3436–1.3111.
Main scenario
Consider long positions above the level of 1.3522 with a target of 1.4124–1.4300 once the correction has ended.
Alternative scenario
Breakout and consolidation below the level of 1.3522 will allow the pair to continue declining to the levels of 1.3436–1.3111.
Analysis
A bullish fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, with wave (1) of 5 formed and a bearish corrective wave (2) of 5 completed as its parts. On the daily timeframe, the third wave (3) of 5 has likely started unfolding, with the first wave of smaller degree 1 of (3) still developing as part of its structure. On the H4 chart, wave iii of 1 has formed and a local correction iv of 1 is nearing completion. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4124–1.4300 after the correction ends. The level of 1.3522 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3436–1.3111.
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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