The current USDCAD chart shows the internal structure of a large correction pattern. This most likely takes the form of a cycle triple zigzag w-x-y-x-z.
The final actionary leg wave z is under construction. This wave takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, where the sub-waves Ⓦ-Ⓧ have ended
The final actionary wave Ⓨ could end in the form of a standard zigzag (A)-(B)-(C) near 1.403. At that level, cycle wave z will be at 161.8% of cycle wave y.
Let’s consider an alternative scenario. According to this, the formation of a cycle triple zigzag could be fully completed. Therefore, let’s assume that the initial part of a new bearish trend is forming.
We view the construction of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, which is the beginning in a larger correction pattern.
It is likely that the primary waves Ⓦ-Ⓧ have ended, each of which is a double zigzag of the intermediate degree.
In the near future, we can expect the formation of a bearish primary wave Ⓨ, which could take the standard zigzag shape (A)-(B)-(C) and end near 1.331. At that level, the primary waves Ⓦ and Ⓨ will be equal.
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