USD/CAD: wave analysis 20 January 2021, 10:13

USD/CAD: wave analysis

20 January 2021, 10:13

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.2698
Take Profit	1.2550, 1.2400
Stop Loss	1.2760
Key Levels	1.2400, 1.2550, 1.2954, 1.3179, 1.3423

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2960
Take Profit	1.3179, 1.3423
Stop Loss	1.2885
Key Levels	1.2400, 1.2550, 1.2954, 1.3179, 1.3423

The pair is in a correction, a fall is possible.

On the daily chart, the downward wave of the higher level (C) of 4 develops, within which the fifth wave 5 of (C) form. Now, the third wave of the lower level iii of 5 has developed, and a local correction is ending to form as the wave iv of 5. If the assumption is correct, after the end of the correction, the pair will fall to the levels of 1.2550–1.2400. In this scenario, critical stop loss level is 1.2954.

Main scenario

Short positions will become relevant after the end of the correction, below the level of 1.2954 with the targets at 1.2550–1.2400. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2954 will let the pair grow to the levels of 1.3179–1.3423.