A decline is still possible.

Assumingly, there is a formation of a large “bearish” correction as the fourth wave (4) within which the first wave A as a zigzag is forming. Locally, wave c of A is developing within which a decline is expected within the third wave of the junior level (iii). If the assumption is correct, the pair continues declining to 1.2680. A critical for this scenario is the level of 1.3048 the breakout of which would lead to a growth towards 1.3220-1.3320.

Trading tips

Sell the pair from corrections, below the level of 1.3048 with the target at 1.2680.

Alternative scenario

The breakout and consolidation above the level of 1.3048 would allow the pair to continue growing to1.3220-1.3320 within wave B.

USD/CAD: wave analysis

USD/CAD: wave analysis

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