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Main scenario: consider short positions from corrections below the level of 1.3604 with a target of 1.3170 – 1.2977.
Alternative scenario: breakout and consolidation above the level of 1.3604 will allow the pair to continue rising to the levels of 1.3724 – 1.3857.
Analysis: the bullish first wave of a larger degree (1) is presumably formed on the daily time frame. The downward correction is developing as the second wave (2). On the H4 chart, wave A of (2) was formed, the upward correction was completed as wave B of (2) and the formation of wave C of (2) began. Apparently, the first wave of the smaller level (i) of i of C has been formed on H1 time frame. If the presumption is correct, then after the completion of wave (ii) of i of C, the USDCAD pair will decline to the levels of 1.3170 – 1.2977. The level of 1.3604 is critical in this scenario as its 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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