USD/CAD: The price likely to continue to rise towards 1.400
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 Ⓦ.
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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.
Author
Jing Ren
Orbex
Jing-Ren has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London.
