USD/СAD: Wave analysis and forecast for 07/12/2018 – 14/12/2018

The pair USD/CAD is still likely to grow. Estimated pivot point is at a level of 1.3154.

Main scenario: long positions will be relevant from corrections above the level of 1.3154 with a target of 1.3700 – 1.3800.

Alternative scenario: breakout and consolidation below the level of 1.3154 will allow the pair to continue falling down to a level of 1.2887.

Analysis: Supposedly, the downward correction of senior level in the form of wave 2 of (5) has finished in the daily timeframe, and the wave 3 of (5) has started developing. In the H4 time frame, the inceptive first wave of junior level i of 3 has been formed, as well as the correction to it as the wave ii of 3.  Apparently, an upward momentum is forming as the wave (i) of iii on the 1H time frame. If the presumption is correct, after the local correction (ii) of iii has finished, the pair may be expected to continue rising up to the levels of 1.3700 – 1.3800. The level 1.3154 is critical in this scenario.