USD/CAD: Wave analysis and forecast for 09/11/2018 – 16/11/2018

Correction for the pair USD/CAD is nearing completion. Estimated pivot point is at a level of 1.3229.

Main scenario: short positions will be relevant at retracements and below the level of 1.3229 with a target of 1.2887 – 1.2735.

Alternative scenario: breakout and consolidation above the level of 1.3229 will allow the pair to continue the rise up to the levels of 1.3390 – 1.3574.

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 of junior level is nearing completion in the form of wave b of 2 that took an irregular plane shape. Apparently, a diagonal triangle finishes forming inside the wave (c) of b on the H1 time frame. If this assumption is correct, the pair may be expected to drop to 1.2887 – 1.2735 once it has finished forming. The level 1.3229 is critical in this scenario.