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Main scenario: consider short positions from corrections below the level of 1.3612 with a target of 1.3170 – 1.2977.
Alternative scenario: breakout and consolidation above the level of 1.3612 will allow the pair to continue rising to the levels of 1.3724 – 1.3857.
Analysis: the ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as second wave (2). Wave А of (2) is formed on the H4 time frame, and a bullish correction finished unfolding as wave В of (2). Apparently, wave С of (2) started developing on the H1 time frame, with first wave of smaller degree (i) of i of C completed as its part. If this assumption is correct, the USDCAD pair will continue to fall to 1.3170 – 1.2977 once a local correction finishes developing as second wave (ii) of i of C. The level of 1.3612 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3724 – 1.3857.
Price chart of USDCAD in real time mode
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