USDCAD: Impulsive Trend Could Weigh On Prices

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The formation of the USDCAD currency pair suggests the development of a large corrective trend. This takes the form of a standard Ⓐ-Ⓑ-Ⓒ zigzag.

At the end of October, the downward movement of the market ended within the primary correction. This took the form of a double zigzag bassist (W) – (X) – (Y) of the middle grade. Then we saw an impulsive growth within the primary wave Ⓒ.

Currently, impulse wave (1) and the middle correction wave (2) are over. In the near future, the upward movement of the price in the middle sub-waves (3) – (4) – (5) is likely to continue.

The end of the entire primary impulse wave is possible around the level of 1.295. Thus, it is a good opportunity to make money through purchases, to take profit at the end of the wave.

USDCAD

An alternative scenario shows that the primary double Ⓦ-Ⓧ-Ⓨ zigzag is constructed, with the action wave Ⓨ under development.

Wave Ⓨ can take the form of (A) – (B) – (C) zigzag of the middle degree. So far, the first impulse wave (A) is over. To confirm the alternative, we should see a decline in the currency pair within the median correction (B).

Most likely, if the market goes down, the price will fall to 1,246. At that level, wave (B) will be at 61.8% of wave (A). After that, the final impulse wave (C) could lead the market higher than 1.296.

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