Main scenario: consider long positions above the level of 1.3492 with a target of 1.4300 – 1.4500 once correction is over.
Alternative scenario: breakout and consolidation below the level of 1.3492 will allow the pair to continue declining to the levels of 1.3287 – 1.2951.
Analysis: the fifth wave of larger degree 5 is presumably unfolding on the daily chart, with wave (1) of 5 formed and a corrective wave (2) of 5 completed as its parts. The third wave (3) of 5 is developing on the H4 chart, with wave 3 of (3) forming inside. Apparently, the third wave of smaller degree iii of 3 is completed on the H1 chart, a local correction formed as the fourth wave iv of 3, and the fifth wave v of 3 started unfolding, with wave (ii) of v developing as its part. If the presumption is correct, the pair will continue to rise to the levels of 1.4300 – 1.4500 after correction. The level of 1.3492 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3287 – 1.2951.
Price chart of USDCAD in real time mode
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