The pair USD/CAD is likely to fall under correction. Estimated pivot point is at a level of 1.3340.
Main scenario: short positions will be relevant from corrections below the level of 1.3340 with a target of 1.3108 – 1.3036.
Alternative scenario: breakout and consolidation above the level of 1.3340 will allow the pair to continue rising to a level of 1.3500.
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 is developing in the 4-hour timeframe. Apparently, the third wave of junior level (iii) of v is formed in the 1-hour time frame. If this assumption is correct, we may expect that the pair will go down as part of the fourth wave (iv) of v to the levels 1.3108 – 1.3036 under correction. The level 1.3340 is critical in this scenario.
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