The USDCAD structure indicates the construction of a large correction wave IV. This is part of a global cycle impulse and consists of sub-waves Ⓐ-Ⓑ-Ⓒ.
On the current chart, we see the final part of the primary impulse wave Ⓒ. Wave Ⓒ consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5). A deep intermediate correction (4) is currently under development. This could take the form of a minor triple zigzag W-X-Y-X-Z.
In the near future, prices should rise in the last minor sub-wave Z. It is most likely to be a minute double zigzag, and will end its pattern near 1.341.
At that price level, correction (4) will be at 61.8% of previous impulse wave (3).
According to the second option, the formation of the intermediate correction (4) has already been fully completed. In this scenario, it has the form not of a triple, but of a double zigzag W-X-Y.
Thus, in the last section of the chart, we see the development of the initial part of the intermediate wave (5). This can take the form of a minor impulse 1-2-3-4-5.
A price decline in the sub-waves 1-2-3-4-5 is then likely, and the entire intermediate wave (5) is likely to end near 1.195.
At the level of 1.195, impulse (5) will be at the 50% Fibonacci extension of intermediate impulse (3).