Main scenario: consider short positions below the level of 1.2880 with a target of 1.2000 – 1.1850 once correction is completed.
Alternative scenario: breakout and consolidation above the level of 1.2880 will allow the pair to continue rising to the levels of 1.3413 – 1.3722.
Analysis: Wave (С) of 4 of larger degree continues developing on the daily time frame, with the third wave 3 of (C) formed inside. Presumably, an ascending correction is nearing completion as wave 4 of (С) on the H4 time frame, with wave c of 4 forming inside. Apparently, wave (v) of c is nearing completion on the H1 time frame. If this assumption is correct, the pair will continue to fall to 1.2000 – 1.1850 once wave c of 4 is completed. The level of 1.2880 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3413 – 1.3722.
Price chart of USDCAD in real time mode
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