USDCAD - BUY IDEA

In this USDCAD 2-hour chart, I’m forecasting a bullish scenario based on Elliott Wave analysis. The chart presents a clear corrective pattern post a significant uptrend, labeled as waves (1) through (4), and suggests that we could be in the early stages of the final impulsive wave (5).

The decline of wave (4) seems to have found support, and there's an indication of a reversal that may be the start of wave (5). According to Elliott Wave principles, wave (5) often reaches the Fibonacci extension of wave (1), which in this case suggests a potential target at 1.39451, the 1.618 extension level.

The strategy is to look for entry opportunities as we witness further evidence of upward momentum, confirming the start of wave (5). Traders should consider a LONG position with the anticipation of a rise towards the 1.39451 level, keeping in mind that markets are dynamic and wave counts could adapt with new price information. Risk management is essential; thus, placing a stop loss below the end of wave (4) is prudent to protect against unexpected market shifts. Keep a close eye on price action and be ready to adjust positions as needed.

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