USD/CAD: Wave analysis and forecast for 01/02/2019 – 08/02/2019

The pair USD/CAD is still likely to fall. Estimated pivot point is at a level of 1.3286.

Main scenario: short positions will be relevant from corrections below the level of 1.3286 with a target of  1.3070 – 1.3030.

Alternative scenario: breakout and consolidation above the level of 1.3286 will allow the pair to continue the rise up to the levels of  1.3376 – 1.3419 and higher.

Analysis: Supposedly, a descending correction of senior level in the form of the wave 2 of (5) finished developing on the daily frame and the wave 3 of (5) is forming at the moment. On the 4-hour timeframe, an upward impetus finished developing as the first wave  i of 3 and a downward correction ii of 3 is forming as a zigzag at the moment. Apparently, the wave (с) of ii is developing on the 1H time frame. If the presumption is correct, the pair will  continue falling to the levels of  1.3070 – 1.3030 in the short term. The level  1.3286 is critical in this scenario.