USD/СAD Wave analysis and forecast for 26.01 – 02.02

Estimated pivot point is at a level of 1.2487.

Main scenario: short positions will be relevant from corrections below the level of 1.2487 with a target of 1.2220.

Alternative scenario:Breakout and consolidation above the level of  1.2487 will allow the pair to continue rising to a level of 1.2600 and higher.

Analysis: Supposedly, a descending correction continues to develop within the 4-hour time frame in a form of the wave 2 of (5). Apparently, the wave c of 2 is forming now, with a local correction of junor level (iv) of c forming inside.  If the presumption is correct, the pair will continue to fall to a level of  1.2220 once the correction has been completed. The level 1.2487 is critical in this scenario.