USD/CAD: Wave Analysis 03 March 2021

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EnclaveFX
Mar 03, 2021
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The pair may grow.

 On the daily chart, the downward wave of the higher level (C) of 4 developed, and the formation of the wave 5 started. Now, the first wave of the lower level i of 1 of (1) of 5 is forming, within which a local correction is developing as the wave (ii) of i. If the assumption is correct, after the end of the correction, the pair will grow to the levels of 1.2880–1.3179. In this scenario, critical stop loss level is 1.2460.

 Main Scenario

 Long positions will become relevant during the correction, above the level of 1.2460 with the targets at 1.2880–1.3179. Implementation period: 7 days and more.

 Alternative Scenario

 The breakdown and the consolidation of the price below the level of 1.2460 will let the pair go down to the levels of 1.2300–1.2200.

 Scenario

 Timeframe: Weekly

Recommendation: Buy

Entry Point: 1.2632

 Take Profit: 1.2880, 1.3179

 Stop Loss: 1.2460

Key Levels: 1.2200, 1.2300, 1.2460, 1.2880, 1.3179

 Alternative Scenario

 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 1.2455

Take Profit: 1.2300, 1.2200

Stop Loss: 1.2515

Key Levels: 1.2200, 1.2300, 1.2460, 1.2880, 1.3179