(Click on image to enlarge)
Just like a few weeks ago, USDCAD formed a correction triple zigzag consisting of cycle waves w-x-y-x-z.
The first four sub-waves w-x-y-x are fully completed. The final actionary sub-wave z is being built. The wave z takes the form of a primary double zigzag Ⓦ–Ⓧ-Ⓨ.
At the moment, prices are in the last wave Ⓨ. This wave 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 Ⓦ.
(Click on image to enlarge)
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 could be a construction of the primary double zigzag Ⓦ-Ⓧ-Ⓨ. This is the beginning in a larger correction pattern. Primary waves Ⓦ-Ⓧ have ended.
A continuation of the bearish primary wave Ⓨ is possible in the near future. It could take the form of a double zigzag (W)-(X)-(Y) and end near 1.295, where it will be equal to wave Ⓦ.
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