USD/CAD is making an overlapping decline within higher degree wave c of 4, so we are wondering if price is unfolding an Elliott wave ending diagonal.
If so then current Fibonacci support region of 61.8 can react as a turning point and push its price higher, and also if current structure is an ending diagonal, then a sharp three-wave rally can be around the corner for the pair.
On that note, a break above the 1.2796 level would suggest a completed wave c and a bullish continuation.
An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.