The internal structure of the USDCAD currency pair indicates the formation of a bullish wave Ⓩ. This consists of sub-waves (W)-(X)-(Y) and is a double zigzag. Wave Ⓩ is also part of the global cycle correction b.
Within the forming double zigzag, the intermediate sub-waves (W) and (X) have ended. Therefore, in the near future, the pair could start moving up towards the level of 1.295 within the final wave (Y).
At the specified level, the wave Ⓩ will be at 76.4% of the actionary wave Ⓨ.
According to the second scenario, the development of the primary bearish intervening wave Ⓧ, consisting of sub-waves (W)-(X)-(Y), is not yet complete. These sub-waves all together make up a bearish double zigzag.
It is assumed that (W) and (X) are fully complete, (Y) is still under construction. As part of the wave (Y), the minor sub-waves W and X have ended.
Therefore, a decrease in the actionary wave Y to the level of 1.238 is possible in the near future.
At that level, the wave (Y) will be at 100% of the wave (W). An approximate scheme of possible future movement is shown on the chart.