USD/CAD: wave analysis | FX Signals

USD/CAD: wave analysis25 January 2017, 09:22

Entry Point1.3152
Take Profit1.3018, 1.2800
Stop Loss1.3210
Key Levels1.2800, 1.3018, 1.3297, 1.3378, 1.3450
Alternative scenario
RecommendationBUY STOP
Entry Point1.3300
Take Profit1.3378, 1.3450
Stop Loss1.3240
Key Levels1.2800, 1.3018, 1.3297, 1.3378, 1.3450
Downward trend is strong.
Assumingly, wave C of the higher level continues forming, within which the first wave has formed. Locally, an upward correction in the second wave ii seems to have finished and the third wave iii has started. If the assumption is correct, in the short-term the pair is expected to continue falling towards the level of 1.3018 and below. Critical for this scenario is the level of 1.3297.
Main scenario
Sell the pair below the level of 1.3297 with targets at 1.3018, 1.2800.
Alternative scenario
The breakout and consolidation above the level of 1.3297 would allow the pair to grow to 1.3378, 1.3450.