Main scenario: consider short positions from corrections below the level of 1.2702 with a target of 1.2250 – 1.2024.
Alternative scenario: breakout and consolidation above the level of 1.2702 will allow the pair to continue rising to the levels of 1.2870 – 1.3200.
Analysis: A descending correction appears to continue developing as the fourth wave 4 of larger degree on the daily chart, with wave (С) forming inside. The fifth wave 5 of (C) continues forming on the H4 chart, with wave iii of 5 unfolding inside. On the H1 chart, apparently, the third wave of smaller degree (iii) of iii is formed and wave (iv) of iii is nearing completion. Upon its completion, if the presumption is correct, the pair will continue falling to the levels of 1.2250 – 1.2024. The level of 1.2702 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.2870 – 1.3200.
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.