Main scenario: consider short positions from corrections below the level of 1.2884 with a target of 1.2410 – 1.2280.
Alternative scenario: breakout and consolidation above the level of 1.2884 will allow the pair to continue rising to the levels of 1.3073 – 1.3428.
Analysis: apparently, a descending correction finished developing as the fourth wave 4 of larger degree on the daily chart, and the fifth wave 5 started forming. The first counter-trend wave of smaller degree 1 of (1) of 5 is formed and a local correction is developing as the second wave 2 of (1) of 5 on the H4 chart. Apparently, wave a of 2 continues developing on the H1 chart, with wave (v) of a forming as its part. If the presumption is correct, the pair will continue to drop to the levels of 1.2410 – 1.2280. The level of 1.2884 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3073 – 1.3428.
Price chart of USDCAD in real time mode
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