USD may also see some weakness against the Canadian currency as we see the pair running higher into the final stages of a five wave recovery. In fact, there is a wedge pattern, known as an ending diagonal that indicates a potential turning point lower this week. A fall back below 1.3600 would be a strong indication of a top in place.
USDCAD, 1H
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.
Ending Diagonal Pattern:
