USD/CAD: Wave analysis and forecast for 10/08/2018 – 17/08/2018

Ascending trend for the pair USD/CAD continues. Estimated pivot point is at a level of 1.2960.

Main scenario: long positions will be relevant from corrections above the level of 1.2960 with a target of 1.3385 – 1.3500.

Alternative scenario: breakout and consolidation below the level of 1.2960 will allow the pair to continue declining to a level of 1.2740.

Analysis: Supposedly, the first wave of senior level 1 of (5) continues to develop within the daily time frame in the form of a wedge. The fifth wave v of 1 continues developing on the 4-hour timeframe. Apparently, a local correction in the form of the fourth wave of junior level (iv) of v finished forming on the 1H time frame and the wave (v) of v started developing. If the presumption is correct, the pair will continue to rise to levels 1.3385 – 1.3500. The level 1.2960 is critical in this scenario.