The current USDCAD cycle suggests that we are in the final part of a triple zigzag pattern w-x-y-x-z.
Wave z of this triple zigzag, which consists of primary sub-waves Ⓐ -Ⓑ -Ⓒ, is under development as we write.
Waves Ⓐ and Ⓑ of the primary sub-waves have completed, whereas wave Ⓒ, although not completed, could conclude this cycle degree with another bearish leg.
As per our chart, we can see that the primary wave Ⓒ consists of 5 intermediate sub-waves (1)-(2)-(3)-(4)-(5).
The decline towards the end of wave (5) began only recently, having completed minor waves 1 and 3. It seems that the pair could depreciate to complete waves 3,4, and then end with 5 near 1.2908.
At that level, the intermediate wave (5) will have reached the 78.6% Fibonacci extension of the 1.334 – 1.304 trend.
