USD/СAD: Elliott wave analysis and forecast for 29.08.25 – 05.09.25
The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction ends, consider long positions above the level of 1.3535 with a target of 1.4018 – 1.4168. A buy signal: the price holds above 1.3535. Stop Loss: below 1.3460, Take Profit: 1.4018 – 1.4168.
- Alternative scenario: Breakout and consolidation below the level of 1.3535 will allow the pair to continue declining to the levels of 1.3425 – 1.3100. A sell signal: the level of 1.3535 is broken to the downside. Stop Loss: above 1.3610, Take Profit: 1.3425 – 1.3100.
Main Scenario
Consider long positions above the level of 1.3535 with a target of 1.4018 – 1.4168 once the correction is formed.
Alternative Scenario
Breakout and consolidation below the level of 1.3535 will allow the pair to continue declining to the levels of 1.3425 – 1.3100.
Analysis
An ascending fifth wave of larger degree 5 presumably continues unfolding on the weekly chart, with wave (1) of 5 formed as its part. A bearish correction is developing in the form of the second wave (2) of 5. On the daily time frame, wave A of (2) has most likely completed, and an upward correction is developing as wave B of (2), with wave a of B already formed as its part. On the H4 time frame, a local correction is presumably unfolding as wave b of B. If the presumption is correct, USD/CAD will continue to rise to the levels of 1.4018 – 1.4168 after the correction ends. The level of 1.3535 is critical in this scenario, as a breakout below it would allow the pair to decline to 1.3425 – 1.3100.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time
Price chart of USDCAD in real time mode
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