USDCAD hints at a bearish impulse wave Ⓒ consisting of waves (1)-(2)-(3)-(4)-(5) of the intermediate degree.
After completing the triangular corrective wave (4), we saw a smooth decline in the impulse (5).
As part of the impulse (5), a minor wave 5 is currently under development. Therefore, we could see a continuation of the bearish move in this wave to the 1.308 area. In addition, the market may move into a bullish trend.
At that level, wave (5) will be at 76.4% of intermediate impulse (3).
An alternative scenario shows USDCAD forming a bearish triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
This theory shows the primary wave Ⓨ in the form of a bearish zigzag. Whilst we are now at the beginning of a bullish intervening wave Ⓧ.
In the medium term, the price may rise to the level of 1.374. Wave Ⓧ will then be at 61.8% of wave Ⓨ.
After reaching this level, a decline can be expected in wave Ⓩ.
How do you feel the CAD will fare in the coming weeks? Open your Orbex account and trade now!
