USD/CAD: wave analysis

The pair is in a correction and may grow.

On the 4-hour chart, the third wave of the higher level (3) develops, within which a downward correction ends as the wave ii of 1 of (3). Now, a downward momentum has developed as the wave (c) of ii. If the assumption is correct, the pair will begin to grow within the wave iii of 1 to the levels of 1.3450–1.3564. In this scenario, critical stop loss level is 1.3012.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3012 with the targets at 1.3450–1.3564. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.3012 will let the pair go down to the level of 1.2849 and below.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3082
Take Profit 1.3450, 1.3564
Stop Loss 1.3012
Key Levels 1.2849, 1.3012, 1.3450, 1.3564

Alternative scenario

Recommendation SELL STOP
Entry Point 1.3005
Take Profit 1.2849
Stop Loss 1.3065
Key Levels 1.2849, 1.3012, 1.3450, 1.3564