Main scenario: consider short positions from corrections below the level of 1.2811 with a target of 1.2000 – 1.1850.
Alternative scenario: breakout and consolidation above the level of 1.2811 will allow the pair to continue rising to the levels of 1.3413 – 1.3722.
Analysis: wave (С) of 4 of larger degree continues developing on the daily chart, with the third wave 3 of (C) formed inside. An ascending correction finished developing as the fourth wave 4 of (C), and the fifth wave 5 of (C) is forming now on the H4 chart. Apparently, the first counter-trend wave of smaller degree i of 5 is developing on the H1 chart, with wave (iv) of i completed and wave (v) of i developing inside. If the presumption is correct, the pair will continue to drop to the levels of 1.2000 – 1.1850. The level of 1.2811 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3413 – 1.3722.
Price chart of USDCAD in real time mode
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