USD/СAD Wave analysis and forecast for 02.02 – 09.02

Estimated pivot point is at a level of 1.2332.

Main scenario: short positions will be relevant from corrections below the level of 1.2332 with a target of 1.2220 – 1.2180.

Alternative scenario:breakout and consolidation above the level of  1.2332 will allow the pair to continue rising to a level of 1.2600.

Analysis: Supposedly, a descending correction of senior level in the form of the wave 2 of (5) continues to develop within the 4-hour time frame. Apparently, the wave c of 2 is forming now, with the fifth wave of junior level (v) of c forming inside. If the presumption is correct, the pair will continue to drop to the levels 1.2220 – 1.2180. The level 1.2332 is critical in this scenario.