A fall is possible.

On the daily chart, the upward first wave of the higher level (1) of 5 formed, and a correction develops as the second wave (2) of 5, within which the wave B of (2) ended. Now, the downward wave C of (2) has started, within which the first wave of the lower level i of C is developing, a local correction is forming as the second wave ii of C, and the third wave iii of C is forming. If the assumption is correct, the USD/CAD pair will fall to the area of 1.3177–1.2850. In this scenario, critical stop loss level is 1.3790.

Main scenario

Short positions will become relevant below the level of 1.3790 with the targets at 1.3177–1.2850. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price above the level of 1.3790 will let the asset grow to the area of 1.4100–1.4300.