USD/СAD: Elliott wave analysis and forecast for 05.07.24 – 12.07.24

July 5, 2024 2:02 pm

The article covers the following subjects:

Key takeaways

  • Main scenario: consider long positions after a correction ends above the level of 1.3428 with a target of 1.4000 – 1.4200. A buy signal: after the level of 1.3428 is broken. Stop Loss: 1.3300, Take Profit: 1.4200.
  • Alternative scenario: breakout and consolidation below the level of 1.3428 will allow the pair to continue falling to the levels of 1.3166 – 1.2735. A sell signal: after the level of 1.3428 is broken. Stop Loss: 1.3500, Take Profit: 1.2735.

Main scenario

Consider long positions above the level of 1.3428 with a target of 1.4000 – 1.4200 once a correction is formed.

Alternative scenario

Breakout and consolidation below the level of 1.3428 will allow the pair to continue declining to the levels of 1.3166 – 1.2735.

Analysis

The fifth wave of larger degree 5 presumably continues developing on the weekly chart, with wave (1) of 5 forming as its part. On the daily chart, wave 5 of (1) is developing, with wave iii of 5 forming inside. A local correction appears to be unfolding on the H4 time frame as the fourth wave of smaller degree (iv) of iii. If the presumption is correct, the USD/CAD pair will continue to rise to the levels of 1.4000 – 1.4200 after the correction ends. The level of 1.3428 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.3166 – 1.2735.



Price chart of USDCAD in real time mode

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