USD/СAD Wave analysis and forecast for 19.01 – 26.01

Estimated pivot point is at a level of 1.2353.

Main scenario: long positions will be relevant from corrections above the level of 1.2353 with a target of 1.2920.

Alternative scenario:breakout and consolidation below the level of 1.2353 will allow the pair to continue declining to a level of 1.2057.

Analysis: Supposedly, a correction stopped developing within the 4-hour time frame, reaching a retracement level of 62% in the form of the wave 2 of (5) of senior level currently shaped like a plane. Apparently, the third wave 3 of senior level started forming now, with the first wave of junior level (i) developed and the correction (ii) completed inside. If the presumption is correct, the pair will logically continue to rise to a level of 1.2920. The level of 1.2353 is critical in this scenario as the breakout will enable the pair to continue declining to the level of 1.2057.