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 waves 1 of (3) and 2 of (3) completed and wave 3 of (3) developing inside. Wave iii of 3 is developing in the hourly timeframe, with wave (iv) of iii completed and wave (v) of iii developing 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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