This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
The USDCAD structure hints at a bearish impulse consisting of intermediate waves (1)-(2)-(3)-(4)-(5). The impulse is part of a primary degree Ⓐ-Ⓑ-Ⓒ zigzag.
At the time of writing, waves (1)-(2)-(3)-(4) are fully complete. The correction in wave (4) ended in a triangle formation, kicking off wave (5).
Sub-waves 1-2-3 of (5) are complete. The bullish correction in wave 4 is currently in play.
Once completed, wave (5) could decline to 1.319. At that level, wave (5) will be at 61.8% of impulse wave (3).
An alternative view shows correction wave (4) as a zigzag with waves W and X completed. Wave Y is currently under development.
In the short term, we can expect prices to extend up to 1.371. This is the previous high formed by wave W.
A decline in the final wave (5) could then begin to develop.
To keep reading this article, please navigate to: Orbex Forex Trading Blog.