Main scenario: consider long positions from corrections above the level of 1.3553 with a target of 1.4000 – 1.4200.
Alternative scenario: breakout and consolidation below the level of 1.3553 will allow the pair to continue declining to the levels of 1.3418 – 1.3170.
Analysis: the ascending first wave of larger degree (1) continues developing on the daily time frame, with wave 5 of (1) forming as its part. The third wave of smaller degree iii of 5 is developing on the H4 chart, with wave (iii) of iii continuing forming within. Apparently, a local corrective wave iv of (iii) of iii is developing on the H1 chart. Upon its completion, if this assumption is correct, the USDCAD pair will continue to rise to 1.4000 – 1.4200. The level of 1.3553 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.3418 – 1.3170.
Price chart of USDCAD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.
