USD/CAD: Wave analysis and forecast for 05/10/2018 – 12/10/2018

The pair USD/CAD is still likely to fall. Estimated pivot point is at a level of 1.3084.

Main scenario: short positions will be relevant from corrections below the level of 1.3084 with a target of 1.2740 – 1.2580.

Alternative scenario: breakout and consolidation above the level of 1.3084 will allow the pair to continue the rise up to the levels of 1.3227 – 1.3384.

Analysis: Supposedly, 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 is completed in the form of the wave b of 2 and the wave c of 2 is developing. Apparently, the third wave (iii) of c has been formed on the H1 time frame and an upward correction is nearing completion in the form of the wave (iv) of c. If the presumption is correct, the pair will continue to drop to the levels 1.2740 – 1.2580. The level 1.3084 is critical in this scenario.