The current USDCAD structure suggests the development of a large correction trend, which takes the form of a standard Ⓐ-Ⓑ-Ⓒ zigzag.
At the end of October, the downward movement of the market was completed within the primary correction Ⓑ. This took the form of a bearish double zigzag (W)-(X)-(Y) of the intermediate degree. Then we saw an impulsive growth within the primary wave Ⓒ.
At the moment, impulse wave (1) and the intermediate correction wave (2) have ended within the wave Ⓒ. The impulse wave (3) of the has also recently ended.
In the near future, a small correction is likely in wave (4), after which the market growth could resume in impulse (5).
The final of the entire primary impulse wave is possible near 1.299. At that level, it will be at 76.4% of impulse Ⓐ.
Let’s look at an alternative scenario. It assumes the formation of a primary double Ⓦ-Ⓧ-Ⓨ zigzag.
It is assumed that wave Ⓨ will be a (A)-(B)-(C) zigzag of the intermediate degree, with wave (B) in development.
Most likely, the price will decrease to the 1.254 area. This is where wave (B) will be at 61.8% of wave (A). After that, the final impulse wave (C) could lead the market above the level of 1.293.
How do you feel the CAD will fare in the coming weeks? Open your Orbex account and trade now!
