USD/CAD: wave analysis 17 February 2021, 09:09

 

USD/CAD: wave analysis

17 February 2021, 09:09

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.2691
Take Profit	1.2550, 1.2400
Stop Loss	1.2750
Key Levels	1.2400, 1.2550, 1.2845, 1.3179, 1.3423

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.2850
Take Profit	1.3179, 1.3423
Stop Loss	1.2740
Key Levels	1.2400, 1.2550, 1.2845, 1.3179, 1.3423

The pair may fall.

On the daily chart, the downward wave of the higher level (C) of 4 develops, within which the fifth wave 5 of (C) forms. Now, the third wave of the lower level iii of 5 has formed, a local correction has formed as the wave iv of 5, and the wave v of 5 is developing. If the assumption is correct, the pair will fall to the levels of 1.2550–1.2400. In this scenario, critical stop loss level is 1.2845.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2845 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 1.2845 will let the pair grow to the levels of 1.3179–1.3423.