USD/CAD: Wave analysis and forecast for 02/11/2018 – 09/11/2018

The USD/CAD rate is likely to decline. Estimated pivot point is at a level of 1.3170.

Main scenario: short positions will be relevant from corrections below the level of 1.3170 with a target of 1.2887 – 1.2735.

Alternative scenario: Breakout and consolidation above the level of 1.3170 will allow the pair to continue rising to the levels of 1.3280 – 1.3384.

Analysis: The wedge-shaped first wave of senior level 1 of (5) finished developing on the daily time frame, and the downward correction 2 of (5) is forming at the moment. On the H4 time frame, a correction of junior level is complete in the form of wave b of 2 that has taken an irregular plane shape. Apparently, the wave c of 2 starts developing on H1 time frame. If the presumption is correct, the pair will continue declining towards the levels 1.2887 – 1.2735. The level 1.3170 is critical in this scenario.