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The article covers the following topics:
Key points and highlights
- Main scenario: Consider selling positions from corrections below 1.3950 with downside target 1.3414 – 1.3192. Sell signal: after price returns below 1.3950. Stop loss: above 1.3980, Take profit: 1.3414 – 1.3192.
- Alternative scenario: Breakout and consolidation above 1.3950 will allow the pair to continue rising to 1.4200 – 1.4350 levels. Buy signal: after breaking 1.3950 to the upside. Stop loss: below 1.3920, Take profit: 1.4200 – 1.4350.
Main scenario
We should consider short positions from corrections below 1.3950 with a target of 1.3414 – 1.3192.
Alternative scenario
A breakout and stability above 1.3950 will allow the pair to continue rising to 1.4200 – 1.4350 levels.
analysis
The fifth wave of larger degree 5 is supposed to continue developing on the weekly chart, with wave (1) of 5 forming as part of it. The fifth wave of smaller degree 5 of (1) has finished appearing on the daily chart, and a downward correction is forming with the second wave (2) of 5 forming. Apparently, wave i of A has formed inside the developing wave A of (2) on the H4 timeframe. If this assumption is correct, then wave (1) of A has formed inside wave (2) of A on the H4 timeframe. US Dollar/Canadian Dollar The pair will continue to fall to 1.3414 – 1.3192 once the downward correction within the second wave of A ends. The 1.3950 level is crucial in this scenario as a breakout will enable the pair to continue rising to the 1.4200 – 1.4350 levels.
USDCAD currency pair real time price chart
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