USD/CAD: Wave analysis and forecast for 04/01/2019 – 11/01/2019

The USD/CAD price is being corrected, the pair is still likely to decline. Estimated pivot point is at a level of 1.3660.

Main scenario: short positions will be relevant from corrections below the level of 1.3660 with a target of 1.3330 – 1.3230.

Alternative scenario: Breakout and consolidation above the level of 1.3660 will allow the pair to continue rising to the level of 1.3800 and higher.

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. An upward momentum finished developing as the first wave i of 3 and a downward correction ii of 3 started forming on the 4-hour timeframe. Apparently, the wave (a) of ii is developing in the H1 timeframe. If the presumption is correct, the pair will logically continue declining to the levels of 1.3330 – 1.3230. The level 1.3660 is critical in this scenario.