USD/CAD: wave analysis

The pair may grow.

On the 4-hour chart, the third wave of the higher level (3) develops, within which a correction ended as the wave ii of 1 of (3). Now, the wave iii of 1 is developing, within which the local correction (ii) of iii has ended, and the third wave (iii) of iii is forming. If the assumption is correct, the pair will grow to the levels of 1.3450–1.3564. In this scenario, critical stop loss level is 1.3205.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3205 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 1.3205 will let the pair go down to the levels of 1.3128–1.3014.

Scenario

  • Timeframe

    Weekly

  • Recommendation

    BUY

  • Entry Point

    1.3317

  • Take Profit

    1.3450, 1.3564

  • Stop Loss

    1.3205

  • Key Levels

    1.3014, 1.3128, 1.3205, 1.3450, 1.3564

Alternative scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL STOP

  • Entry Point

    1.3200

  • Take Profit

    1.3128, 1.3014

  • Stop Loss

    1.3225

  • Key Levels

    1.3014, 1.3128, 1.3205, 1.3450, 1.3564