USD/CAD: Wave analysis and forecast for 07/09/2018 – 14/09/2018

The pair USD/CAD is still likely to fall. Estimated pivot point is at a level of 1.3381.

Main scenario: short positions will be relevant from corrections below the level of 1.3381 with a target of 1.2820 – 1.2740.

Alternative scenario: breakout and consolidation above the level of 1.3381 will allow the pair to continue rising to a level of 1.3550.

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. The wave a of 2 has formed and the local correction b of 2 finished developing on the H4 time frame. Apparently, the wave c of 2 begins developing on the 1H time frame. If the presumption is correct, the pair will resume falling to the levels of 1.2820 – 1.2740. The level 1.3381 is critical in this scenario.