USD/CAD: Wave analysis and forecast for 14/12/2018 – 21/12/2018

The pair USD/CAD is still likely to grow. Estimated pivot point is at a level of 1.3249.

Main scenario: long positions will be relevant from corrections above the level of 1.3249 with a target of 1.3700 – 1.3800.

Alternative scenario: breakout and consolidation below the level of 1.3249 will allow the pair to continue declining to a level of 1.3079.

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) started forming. On the H4 time-frame, the first counter-trend wave of junior level i of 3 and a respective correction in the form of wave ii of 3 have been formed. On the H1 time-frame, apparently, an ascending impetus in the form of wave (i) of iii has been formed and a local correction (ii) of iii is completed. If the presumption is correct, the pair will logically continue to rise to the levels 1.3700 – 1.3800. The level 1.3249 is critical in this scenario.