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 Ⓦ.
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.
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.
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