By Orbex
The formation of the USDCAD currency pair suggests the development of a large correction 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 bearish double zigzag (W)-(X)-(Y) of the intermediate degree. Then we saw an impulsive growth within the primary wave Ⓒ.
Currently, impulse wave (1) and the intermediate correction wave (2) have ended. In the near future, the upward movement of the price in the intermediate sub-waves (3)-(4)-(5) is likely to continue.
The final of the entire primary impulse wave is possible around the level of 1.295. Thus, there is a good chance to make money on purchases, in order to take profit at the end of the wave Ⓒ.
Free Reports:
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
An alternative scenario shows the primary double Ⓦ-Ⓧ-Ⓨ zigzag is being constructed, with the actionary wave Ⓨ under development.
Wave Ⓨ can take the form of an (A)-(B)-(C) zigzag of the intermediate degree. So far, the first impulse wave (A) has ended. To confirm the alternative, we should see a decline in the currency pair within the intermediate correction (B).
Most likely, if the market goes down, the price will drop 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.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
- Oil prices jumped 4% amid a new wave of escalation between the US and Iran Jul 13, 2026
- EUR/USD: US Inflation Will Determine Everything Jul 13, 2026
- COT Metals Charts: Weekly Speculator Bets see small gains for Silver & Gold Jul 12, 2026
- COT Bonds Charts: Speculator Bets led by SOFR 3-Months & 2-Year Bonds Jul 12, 2026
- COT Energy Charts: Weekly Speculator Changes led by Brent Oil Jul 12, 2026
- COT Soft Commodities Charts: Weekly Speculator Changes led by Sugar, Corn & Soybeans Jul 12, 2026
- The US and European stock indices are rising again amid renewed investor interest in the AI industry. Jul 10, 2026
- USD/JPY Falls as Yen Recovers Weekly Losses Jul 10, 2026
- Crude oil prices surged sharply by 7% in reaction to the rapid escalation of the conflict in the Middle East Jul 9, 2026
- Middle East Tensions Weigh on Gold Jul 9, 2026
