USD/CAD fell to 1.3000 this week, a psychological level that turned into a good support after only a three wave of decline from 1.3314 level. we know that three wave patterns are corrections, in our case it represent a decline in wave 4) that is part of an ending diagonal shown on 4h chart, where we still expect a continuation higher within wave C circled, specifically into sub-wave 5) that can be target 1.3350.
USD/CAD, 4H
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns.
Basic Ending Diagonal:
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