The price is in a correction, a fall is possible.

On the daily chart, the upward first wave of the higher level (1) of 5 formed, a correction ended as the second wave (2) of 5, and the third wave (3) of 5 started. Now, the first wave of the lower level 1 of (3) has ended, and a correction is developing as the second wave 2 of (3), within which the wave a of 2 is forming. If the assumption is correct, the USD/CAD pair will fall to the area of 1.3572–1.3480. In this scenario, critical stop loss level is 1.3951.

Main scenario

Short positions will become relevant below the level of 1.3951 with the targets at 1.3572–1.3480. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price above the level of 1.3951 will let the asset grow to the area of 1.4150–1.4400.