USD/CAD: wave analysis

The pair may grow.

On the 4-hour chart, the third wave of the higher level iii of 1 forms, within which the first wave (i) of iii forms. Now, the local correction (ii) of iii has developed, which has reached the Fibonacci level of 62%. If the assumption is correct, the pair will grow to the levels of 1.3327–1.3498. In this scenario, critical stop loss level is 1.3148.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3148 with the targets at 1.3327–1.3498. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.3148 will let the pair go down to the levels of 1.3040 and below.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3162
Take Profit 1.3327, 1.3498
Stop Loss 1.3100
Key Levels 1.3040, 1.3148, 1.3327, 1.3498

Alternative scenario

Recommendation SELL STOP
Entry Point 1.3145
Take Profit 1.3040
Stop Loss 1.3205
Key Levels 1.3040, 1.3148, 1.3327, 1.3498