On the USDCAD we are looking at a possible higher degree reversal taking place now trading in final stages of sub-wave 3 of three, after a top had been placed at the 1.3585 labeled as the end of a higher degree wave C-circled. As such big ending diagonal is now completed and more weakness may follow in weeks to come. At the meantime we can focus on intra-day pullbacks for a possibility to join the downtrend.
On the updated chart we can see wave 3 approaching the Fibonacci ratio of 261.8, which can cause a turning point into the following wave 4.
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The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal Pattern: