The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3966 with a target of 1.3400–1.3065. A sell signal: the price holds below 1.3966. Stop Loss: above 1.4005, Take Profit: 1.3400–1.3065.
- Alternative scenario: Breakout and consolidation above the level of 1.3966 will allow the pair to continue rising to the levels of 1.4124–1.4350. A buy signal: the level of 1.3966 is broken to the upside. Stop Loss: below 1.3925, Take Profit: 1.4124–1.4350.
Main Scenario
Consider short positions from corrections below the level of 1.3966 with a target of 1.3400–1.3065.
Alternative Scenario
Breakout and consolidation above 1.3966 will allow the pair to continue rising to the levels of 1.4124–1.4350.
Analysis
Apparently, an ascending fifth wave of larger degree 5 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 the third wave of smaller degree iii of C is developing. On the H4 time frame, wave (i) of iii has formed, and a local correction (ii) of iii has presumably been completed. If the presumption is correct, USD/CAD will continue to decline to the levels of 1.3400–1.3065. The level of 1.3966 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.4124–1.4350.
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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