Main scenario: consider long positions from corrections above the level of 1.3492 with a target of 1.4050 – 1.4300.
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 forming in the H4 timeframe, with wave 3 of (3) developing inside. The third wave of a smaller degree iii of 3 must have completed in the hourly chart; the local correction has finished as the fourth wave iv of 3, and the fifth wave v of 3 is currently unfolding, with wave (i) of v forming inside. If the presumption is correct, the pair will continue rising to the levels of 1.4050 – 1.4300. The pivot level in this scenario is 1.3492, 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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