The current chart of the USDCAD pair shows a correction pattern of a triple zigzag marked with cycle waves w-x-y-x-z.
The four waves w-x-y-x have been fully completed, and now the final actionary leg is being built – the sub-wave z. Apparently, it takes the form of a primary double zigzag Ⓦ-Ⓧ-Ⓨ, where the sub-waves Ⓦ-Ⓧ are formed.
Now the market may be in the process of building the final wave Ⓨ.
This wave may 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 Ⓦ.
-638146585693974239.png)
Let's consider an alternative scenario in which the primary double zigzag Ⓦ-Ⓧ-Ⓨ is constructed, which is the beginning in a larger correction pattern.
Perhaps the primary waves Ⓦ-Ⓧ are already completed.
In the near future, a continuation of the bearish primary wave Ⓨ is possible. Perhaps it will take the structure of a double zigzag (W)-(X)-(Y).
The completion of the primary wave Ⓨ is expected at the minimum of the wave Ⓦ, that is, near 1.323.
This market forecast is for general information only. It is not an investment advice or a solution to buy or sell securities.
Authors' opinions do not represent the ones of Orbex and its associates. Terms and Conditions and the Privacy Policy apply.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD consolidates below 1.0850 amid upbeat mood
EUR/USD is easing below 1.0850 in the early European morning. Traders turn cautious, despite easing banking fears, as the focus shifts toward the euro area inflation data. The pair's pullback could be also attributed to a broad US Dollar rebound.
GBP/USD turns south toward 1.2300 as US Dollar rebounds
GBP/USD is heading back toward 1.2300, fading the Asian bounce in early Europe. Broad-based US Dollar rebound, despite a better market mood and sluggish US Treasury bond yields, is weighing on the pair. US housing data awaited.
Gold bears eye $1,930 as mixed sentiment underpins US Dollar rebound
Gold price (XAU/USD) renews its intraday low around $1,960 as it reverses the previous day’s corrective bounce amid early Wednesday in Europe. The precious metal’s latest losses could be linked to the US Dollar’s rebound amid fresh challenges to the risk appetite emanating from China.
Ethereum supply shrinks by 70,000 ETH. Will Ethereum price hit $2,000?
Ethereum transition from Proof-of-Work to Proof-of-Stake was the last major upgrade to the altcoin’s blockchain and the Shanghai hard fork is the next one. The shift to PoS purged 70,000 ETH tokens from the altcoin’s circulating supply.
Market mood improves as banking fears ease
This week, financial markets will focus on key inflation figures from across the globe, speeches by Fed officials, and the US Senate hearings on SVB. Although some normality seems to be returning to markets, this could easily be disrupted by negative news.