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Main scenario: consider long positions from corrections above the level of 1.3452 with a target of 1.3724 – 1.3857.
Alternative scenario: breakout and consolidation below the level of 1.3452 will allow the pair to continue declining to the levels of 1.3170 – 1.2977.
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 continues unfolding as wave В of (2). Apparently, wave с of В is developing on the H1 time frame; as its part, the first wave of smaller degree (i) of c of B is formed and a local correction is nearing completion as second wave (ii) of c of B. If this assumption is correct, the USDCAD pair will continue to rise to 1.3724 – 1.3857 upon correction. The level of 1.3452 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3170 – 1.2977.
Price chart of USDCAD in real time mode
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