USD/CAD: wave analysis

The pair is in a correction and may grow.

On the daily chart, the downward wave of the higher level (C) develops, within which the first wave 1 of (C) formed. Now, an upward correction has started to develop as the second wave 2 of (C), within which the wave a of 2 is forming. If the assumption is correct, the pair will grow to the levels of 1.3388–1.3629. In this scenario, critical stop loss level is 1.2993.

Main scenario

Long positions will become relevant during the correction, above the level of 1.2993 with the targets at 1.3388–1.3629. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.2993 will let the pair go down to the levels of 1.2900–1.2800.