The current USDCAD structure hints to the formation of a primary simple zigzag Ⓐ-Ⓑ-Ⓒ. Waves Ⓐ and Ⓑ are completed, whereas impulse wave Ⓒ is still under development.
Wave Ⓒ consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).
Bearish corrective wave (4), which at the time of writing is in the process of development, is then likely to take the form of a triple zigzag consisting of minor sub-waves W-X-Y-X-Z.
In the short term, we could see a decline in the market in the wave ⓒ, which would be the final part of a triple zigzag, to the level of 1.384. At that level, corrective wave (4) would be at the 50% along the Fibonacci lines of bullish impulse (3).
Then, USDCAD could rise in wave (5) above the level of the previous maximum formed by intermediate wave (3), i.e. above 1.464.
If we consider an alternative scenario, we can see that the intermediate corrective wave (4) could end below the level indicated in the main version.
At the time of writing, minor bullish intervening wave X may have ended, after which the market would have begun to move down in a bearish wave Z, which could take the form of a simple zigzag.
Thus, in the medium term, we could see a decline in the price to the level of 1.364, that is, to the next, larger coefficient on the Fibonacci lines, which is 61.8%.
