The current USDCAD structure hints at a primary degree triple zigzag that consists of sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Currently, prices decline in the final impulse wave (C) of a bearish (A)-(B)-(C) zigzag in wave Ⓩ.
Recently, the market completed a triangle in wave 4 of (C) and has since been continuing down in the final minor wave 5.
Bears can bring the pair down to 1.259. At that level, wave 5 will be at 61.8% Fibonacci extension of minor wave 3.
In case the decline stops around the previous low registered in wave 3 we could be in a flat correction in wave 4. Should this scenario come to play, the bearish sub-wave is part of wave ⓑ of 4.
Currently, only the first part of the flat is fully structured, whereas the zigzag correction in wave ⓑ is approaching its end.
Once complete, we could see the market appreciate in wave ⓒ to the previous high of 1.295.
After the flat pattern ends, minor wave 5 will likely lead the market downward, to fresh lows below wave 3.