USDCAD: Elliott wave analysis and forecast for 22.10.2021 – 29.10.2021
Main scenario: consider short positions from corrections below the level of 1.2500 with a target of 1.2250 – 1.2150.
Alternative scenario: breakout and consolidation above the level of 1.2500 will allow the pair to continue rising to the levels of 1.2647 – 1.2773.
Analysis: a descending correction appears to have formed as the fourth wave 4 of larger degree on the daily chart, with wave (С) of 4 completed and wave 5 unfolding inside. H4 chart: wave 1 of (1) of 5 is formed, and a downward correction is developing as wave 2 of (1) of 5, with wave c of 2 unfolding as part of it. Apparently, the third wave of smaller degree (iii) of c has finished forming on the H1 chart, and a corrective wave (iv) of c has started developing. If the presumption is correct, the pair will continue falling to the levels of 1.2250 – 1.2150 after the corrective wave (iv) of c is formed. The level of 1.2500 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.2647 – 1.2773.
Price chart of USDCAD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.