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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 ascending first wave of larger degree (1) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave (2). Wave A of (2) and an ascending corrective wave B of (2) are formed, and wave C of (2) started developing on the H4 time frame. Apparently, the first wave of smaller degree (i) of i of C is formed on the H1 time frame, and a local correction is nearing completion as second wave (ii) of i of C. If the presumption is correct, the USDCAD will continue falling to the levels of 1.3170 – 1.2977. The level of 1.3604 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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