USD/CAD: wave analysis

The growth of the pair is expected.

On the 4-hour chart, the development of the downward correction of the higher level as a wave 2 of (5) has ended. Now the formation of the third wave 3 of (5) has begun, within it the entering momentum of the lower level i of 3 has formed, and the development of the downward correction ii of 3 is ending. If the assumption is correct, the pair will grow to the levels of 1.2685–1.2920. The level of 1.2420 is critical for this scenario.

Main scenario

Long positions will become relevant after the rebound from the level of 1.2420 with the targets at 1.2685–1.2920.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.2420 will let the pair go down to the level of 1.2255.

Trade

Scenario

Timeframe Weekly
Recommendation BUY LIMIT
Entry Point 1.2420
Take Profit 1.2685, 1.2920
Stop Loss 1.2330
Key Levels 1.2255, 1.2420, 1.2685, 1.2920

Alternative scenario

Recommendation SELL STOP
Entry Point 1.2410
Take Profit 1.2255
Stop Loss 1.2470
Key Levels 1.2255, 1.2420, 1.2685, 1.2920