We can see USDCAD undergoing a small intraday rally within sub-wave five of 5, which can be the last act of bulls, before a probable reversal towards lower levels happens. That said we see wave 5 displaying a structure of an ending diagonal, which usually suggests a sharp reversal to come, once the ending diagonal completes itself. Well, bears could take over around the Fibonacci ratio of 261.8 in hours to come.
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:
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