Ascending trend for the pair USD/CAD continues. Estimated pivot point is at a level of 1.2960.
Main scenario: long positions will be relevant from corrections above the level of 1.2960 with a target of 1.3385 – 1.3500.
Alternative scenario: breakout and consolidation below the level of 1.2960 will allow the pair to continue declining to a level of 1.2740.
Analysis: Supposedly, the first wave of senior level 1 of (5) continues to develop within the daily time frame in the form of a wedge. The fifth wave v of 1 continues developing on the 4-hour timeframe. Apparently, a local correction in the form of the fourth wave of junior level (iv) of v finished forming on the 1H time frame and the wave (v) of v started developing. If the presumption is correct, the pair will continue to rise to levels 1.3385 – 1.3500. The level 1.2960 is critical in this scenario.
Price chart of AA in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.