USD/CAD: wave analysis

The pair may grow.

On the 4-hour chart, a downward correction of the higher level 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) has started, within which the wave (i) of iii is forming. If the assumption is correct, the pair will grow to the levels of 1.3349–1.3450. In this scenario, critical stop loss level is 1.3112.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3112 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 1.3112 will let the pair go down to the level of 1.3038.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3195
Take Profit 1.3349, 1.3450
Stop Loss 1.3112
Key Levels 1.3038, 1.3112, 1.3349, 1.3450

Alternative scenario

Recommendation SELL STOP
Entry Point 1.3110
Take Profit 1.3038
Stop Loss 1.3145
Key Levels 1.3038, 1.3112, 1.3349, 1.3450