Main scenario: consider short positions from corrections below the level of 1.3693 with a target of 1.3090 – 1.2778.
Alternative scenario: breakout and consolidation above the level of 1.3693 will allow the pair to continue rising to the levels of 1.4000 – 1.4300.
Analysis: wave (В) of 4 is presumably completed on the daily chart. Wave (С) of 4 is unfolding, with wave 3 of (C) continuing forming as its part. The first wave i of 3 is formed on the H4 chart, and a local correction finished developing as the second wave ii of 3. Apparently, the third wave iii of 3 started developing in the H1 time frame, with the first counter-trend wave of smaller degree i of (i) of iii forming inside. If the presumption is correct, the pair will continue to drop to the levels of 1.3090 – 1.2778. The level of 1.3693 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4000 – 1.4300.
Price chart of USDCAD in real time mode
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