USDCAD: Potential 5-Wave Eyes Above 1.332

The current structure hints to a completed triple zigzag pattern consisting of waves w-x-y-x-z.

Since its conclusion at 1.2960, the cycle degree correction triggered some sizeable longs. This initiated the primary impulse wave Ⓐ.

With intermediate waves (1) and (2) completed at this rate of change, we could expect bulls to reach the previous high of 1.332, or even higher in the medium-term.

In the short-term, and as we extend upwards to end intermediate wave (3), we could also see an ascend. This adds to the structure’s upward bias towards fresh multiweek highs.

In case the primary triple zigzag isn’t completed, we could see another bearish leg after the correction of primary wave Ⓑ.

Since wave Ⓐ is a fully completed in a 5-wave manner, we could expect wave Ⓑ  to end a little higher up soon, and then receive another bearish impulse to finalize the cycle-degree corrective zigzag.

Wave Ⓑ could be completed near 1.324. At that level, prices will be at the 78.6% Fibonacci of primary wave Ⓐ.

After the completion of the wave Ⓑ, the prices could fall to at least a false break below the previous low of 1.2960.