USD/CAD Wave Analysis: Local Bullish Support
USD/CAD continues to develop the 5th bullish wave on an H16 chart shown with a chocolate line within the complex correction structure of the older time frame. The slope blue dashed channel still protects the overall H16 wave structure.
A smaller 4-hour time frame shows us an aqua wave structure having 3 full finished waves A, B and C and constructing the 4th correction wave down at the moment. However, the current bearish move may yet turn into the new A impulse thus building a more complex correction of an older time frame.
The current down move determined as the 4th correction wave on an H4 chart looks like a bearish 3-wave structure on a smaller H1 time frame plotted with lime lines. The Loonie seems to be building either a bullish correction subwave within the C impulse down or the 4th bullish correction – both will have a bearish continuation on H1. If the recovery accumulates its strength enough to play as a new bullish A impulse, it should get support from an H4 time frame.