USD/СAD wave analysis and forecast for 05.01 – 12.01

Estimated pivot point is at a level of  1.2465. 

Main scenario: long positions will be relevant from corrections above the level of 1.2465 with a target of 1.2792 – 1.2920

Alternative scenario:  breakout and consolidation below level 0.9800 will allow the pair to continue declining to the level of 1.2390.

Analysis: supposedly, the correction has completed within 4-hour timeframe in the form of wave (2) of 5 of senior level, currently shaped like a plane, and reached the correctional level of 50%.  Apparently, the price is starting to reverse. If the presumption is correct, it is reasonable to expect the pair rise to the levels of 1.2792 – 1.2920. The level 1.2390 is critical in this scenario. The pair will continue declining, having outbroken this level.