The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3815 with a target of 1.4150 – 1.4300. A buy signal: the price holds above 1.3815. Stop Loss: below 1.3780, Take Profit: 1.4150 – 1.4300.
- Alternative scenario: Breakout and consolidation below the level of 1.3815 will allow the pair to continue declining to the levels of 1.3675 – 1.3580. A sell signal: the level of 1.3815 is broken to the downside. Stop Loss: above 1.3850, Take Profit: 1.3675 – 1.3580.
Main Scenario
Consider long positions from corrections above the level of 1.3815 with a target of 1.4150 – 1.4300.
Alternative Scenario
Breakout and consolidation below the level of 1.3815 will allow the pair to continue declining to the levels of 1.3675 – 1.3580.
Analysis
The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. The fifth wave of smaller degree 5 of (1) continues developing on the daily chart, within which a correction is completed as the fourth wave iv of 5. Apparently, the fifth wave v of 5 is forming on the H4 chart, with wave (iii) of v unfolding as its part. If the presumption is correct, the USDCAD pair will continue to rise to the levels of 1.4150 – 1.4300. The level of 1.3815 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3675 – 1.3580.
Price chart of USDCAD in real time mode
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