The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 1.4144 with a target of 1.4400–1.4570. A buy signal: the local correction ends and the price settles above 1.4144. Stop Loss: below 1.4100, Take Profit: 1.4400–1.4570.
- Alternative scenario: Breakout and consolidation below 1.4144 will allow the pair to continue declining to the levels of 1.3757–1.3548. A sell signal: the level of 1.4144 is broken to the downside. Stop Loss: above 1.4185, Take Profit: 1.3757–1.3548.
Main Scenario
Consider long positions from corrections above 1.4144 with a target of 1.4400–1.4570.
Alternative Scenario
Breakout and consolidation below 1.4144 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 unfolding, with wave c of B forming as its part. On the H4 time frame, the fifth wave of smaller degree (v) of c is presumably developing, with wave iii of (v) completed as its part. If the presumption is correct, USD/CAD will resume rising to the levels of 1.4400–1.4570 once a local correction finishes developing as wave iv of (v). The level of 1.4144 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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