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 downward correction formed as the wave ii of 1 of (3). Now, the development of the third wave of the lower level iii of 1 of (3) is starting. If the assumption is correct, the pair will grow within the wave to the levels of 1.3349–1.3450. In this scenario, critical stop loss level is 1.3041.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3041 with the targets at 1.3349–1.3450. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.3041 will let the pair go down to the level of 1.2849 and below.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3137
Take Profit 1.3349, 1.3450
Stop Loss 1.3041
Key Levels 1.2849, 1.3041, 1.3349, 1.3450

Alternative scenario

Recommendation SELL STOP
Entry Point 1.3035
Take Profit 1.2849
Stop Loss 1.3100
Key Levels 1.2849, 1.3041, 1.3349, 1.3450