Just like a few weeks ago, USDCAD is most likely forming a correction pattern – a triple zigzag consisting of cycle waves w-x-y-x-z.
The first four sub-waves w-x-y-x are fully completed, and the final actionary leg, the sub-wave z, is being built. Apparently, the wave z takes the form of a primary double zigzag Ⓦ–Ⓧ-Ⓨ, where the sub-waves Ⓦ-Ⓧ are formed.
At the moment, the market may build the last wave Ⓨ.
It can end in the form of a double zigzag (W)-(X)-(Y) near 1.400. At that level, it will be at 61.8% of zigzag wave Ⓦ.
However, the formation of a cycle triple zigzag could be fully completed. Thus, let’s consider the second scenario, where the initial part of a new bearish trend can now be built.
It is likely that there may be a construction of the primary double zigzag Ⓦ-Ⓧ-Ⓨ, which is the beginning in a larger correction pattern.
Primary waves Ⓦ-Ⓧ look fully completed.
In the near future, a continuation of the bearish primary wave Ⓨ is possible. It may take the form of a double zigzag (W)-(X)-(Y) and end near 1.295, where it will be equal to wave Ⓦ.