The USDCAD structure suggests the development of a cycle double zigzag. This saw wave w complete as a triple Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ zigzag.
Since the beginning of this month, the market has moved upwards. Most likely, a new Ⓐ-Ⓑ-Ⓒ zigzag of the primary degree is currently under construction. This is likely to end at the level of 1.2676, at the completion of the first impulse wave.
At that level, intermediate wave (5), which is part of the wave Ⓐ, will be at the 100% Fibonacci extension of wave (3).
After the completion of the bullish impulse, a corrective decline is likely within the wave Ⓑ below the minimum of 1.2250.
However, there is a possibility that the formation of a bearish cycle wave w is still ongoing.
It is possible that a minute fourth correction is being constructed, which takes the form of a minute zigzag (a)-(b)-(c). We may see its end near 1.2540. At that level, the minute fourth correction will be at 61.8% of the minute third wave.
After reaching this level, the bears can lead the market in the minute fifth wave significantly below the minimum of 1.2012, where the development of a large cycle wave w will be completed.
