USD/CAD: Wave analysis and forecast for 18/01/2019 – 25/01/2019

The pair USD/CAD is likely to fall in price. Estimated pivot point is at a level of 1.3320.

Main scenario: short positions will be relevant below the level of 1.3320 with a target of 1.3130 – 1.3070.

Alternative scenario: breakout and consolidation above the level of 1.3320 will allow the pair to continue the rise up to the levels of 1.3419 – 1.3478.

Analysis: Supposedly, a descending correction of senior level in the form of the wave 2 of (5) finished developing within the daily frame and the wave 3 of (5) is forming. On the 4-hour timeframe, an upward impetus finished developing as the first wave i of 3 and a downward correction ii of 3 is forming at the moment. On H1 time frame, the wave (a) of ii has been formed as an impetus and the downward correction is completed in the form of the wave (b) of ii. If the presumption is correct, the pair will logically continue to decline to the levels 1.3130 – 1.3070. The level 1.3320 is critical in this scenario.