The current structure of the USDCAD currency pair indicates the construction of a large correction wave IV. This is part of the global cycle impulse. This correction consists of sub-waves Ⓐ-Ⓑ-Ⓒ.

On the current chart, we see the final part of the primary impulse wave Ⓒ. Wave Ⓒ consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5). A deep intermediate correction (4) is currently developing. This can take the form of a triple W-X-Y-X-Z zigzag.

In the near future, prices could rise in the final minor sub-wave Z. This actionary sub-wave is likely to be a minute double zigzag, as shown on the chart, and will end its pattern near the 1.314 level.

At the specified price level, correction (4) will be at 50% of the previous impulse wave (3).

(Click on image to enlarge)

The alternative suggests that the formation of the intermediate correction (4) has ended. In this scenario, it does not have the form of a triple, but of a double zigzag W-X-Y.

Thus, in the last section of the chart, we see the development of the initial part of the intermediate wave (5), which can take the form of a minor impulse 1-2-3-4-5.

If this scenario is confirmed, then in the upcoming trading weeks, market participants can expect an impulse price decline in the 3-4-5 sub-waves, as shown on the chart. And the entire intermediate wave (5) is likely to end near 1.176.

At that level, impulse (5) will be at the 50% Fibonacci extension of intermediate impulse (3).