USDCAD - Breakout Will Flip the Trend BullishUSDCAD has been sliding inside a well-defined descending channel, completing a full five-wave drop toward the support zone. The structure from the top looks corrective rather than impulsive. That means the downtrend is weakening as it reaches its final leg.
Your count shows Wave 3 finishing at the dashed red line zone, followed by a small Wave 4 bounce, and now the market is pushing into the last Wave 5. This final drop is expected to target the Fibonacci levels near 1.3915 and 1.3895 . Nothing suggests strength until those levels are tested.
The price is still trapped inside the downward channel, and every bounce has been getting sold. That confirms sellers are still in control for now. Wave (C) is close to completion, but buyers haven’t proven anything yet.
The bullish outlook only becomes valid after a clean breakout above the channel. Without that break, any upside move is just noise inside a bearish structure. The breakout must hold with a higher low to confirm a trend reversal.
If the channel breaks decisively, a strong bullish reversal toward 1.40+ becomes possible. The entire structure suggests the downtrend is aging, so a major upside swing is likely once sellers exhaust. Until then, downside targets remain open and caution is necessary.
Stay Tuned!
@Money_Dictators
