The current USDCAD structure hints to a cycle degree triple combination consisting of correction waves w-x-y-x-z.
With the last wave ending, we could be now seeing the first stages of intermediate wave (1) in a minor bullish impulse followed by a correction wave (waves 1 and 2).
If this scenario turns out valid, then one of the probabilities is that the correction wave 2 has been already formed. This means we could expect a minor upside impulse 3 in the short-term.
It is difficult to project where this will extend to, however, if true, it could move all the way up to the highest top seen on the charts.
We should, however, consider an alternative scenario. This projection sees the correction to cycle wave z incomplete.
In this scenario, the current USDCAD structure sees minor waves 1 and 2 of the previous scenario as intermediate waves (A) and (B).
With wave (C) expected to complete the correction, we could see the 1.3137level taken out before returning to previous lows. This target would extend to the 78.6% retracement of intermediate sub-waves (A).
Following the completion of the primary intervening wave Ⓧ, a decline to the chart’s low or even lower could occur.