The current USDCAD timeframe 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 first four parts of this construction have ended. Now the final actionary sub-wave z is being built. The wave z takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ.
The final actionary primary wave Ⓨ could end in the form of a double zigzag (W)-(X)-(Y) 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, the initial part of a new bearish trend is forming.
The construction of a primary triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ is the beginning of a larger correction pattern. It is likely that the primary waves Ⓦ-Ⓧ-Ⓨ-Ⓧ are already over.
In the near future, we could see a bearish primary wave Ⓩformation. This could be a standard zigzag shape (A)-(B)-(C) and end near 1.304. At that level, primary wave Ⓩ will be at 76.4% of wave Ⓨ.