Main scenario: consider short positions from corrections below the level of 1.3976 with a target of 1.3354 – 1.3206.
Alternative scenario: breakout and consolidation above the level of 1.3976 will allow the pair to continue rising to the levels of 1.4300 – 1.4500.
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 formed on the H1 chart, and a bearish correction started forming as the fourth wave iv of 3, with wave (а) of iv developing as its part. If the presumption is correct, the pair will continue to drop to the levels of 1.3354 – 1.3206. The level of 1.3976 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4300 – 1.4500.
Price chart of USDCAD in real time mode
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