The U.S. dollar/Canadian dollar (USD/CAD) currency looks to have unfolded a triangle correction in Wave four, which means one more push to the downside is expected to unfold on the pair. Latest activity suggest that sub-wave e) is completed and that Blue Wave v can be in progress. A breach below the 1.3162 level would confirm more weakness.
USD/CAD, 1 hour
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from Waves A to C, and from Waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in Wave 4, Wave B, aWve X position or in some very rare cases also in Wave Y of a combination.
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.