USD/CAD: Wave analysis and forecast for 19/10/2018 – 26/10/2018

The pair USD/CAD is still likely to grow. Estimated pivot point is at a level of 1.2924.

Main scenario: long positions will be relevant from corrections above the level of 1.2924 with a target of 1.3227 – 1.3384.

Alternative scenario: Breakout and consolidation below the level of 1.2924 will allow the pair to continue declining to the levels of 1.2735 – 1.2580.

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 continues developing in the form of wave b of 2 that is taking an irregular plane shape. Apparently, the wave (c) of b is developing on H1 time frame, with the first wave iii of (c) forming inside. If the presumption is correct, the pair will continue to rise to the levels 1.3227 – 1.3384. The level 1.2924 is critical in this scenario.