USD/CAD: Wave analysis and forecast for 24/08/2018 – 31/08/2018

Ascending trend for the pair USD/CAD continues. Estimated pivot point is at a level of 1.2985.

Main scenario: long positions will be relevant from corrections above the level of 1.2985 with a target of 1.3385 – 1.3500.

Alternative scenario: breakout and consolidation below the level of 1.2985 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, the final fifth wave of junior level (v) of v started forming on the H1 time frame, with the waves i of (v) and ii of (v) formed inside. If the presumption is correct, the pair will continue to rise to levels 1.3385 – 1.3500. The level 1.2985 is critical in this scenario.