USD/CAD Big Correction !

USD/CAD finished 5 waves down in a descending channel and we expected it to break with wave A which, according to the Elliott principle, is known to be the first corrective wave. Then, it retested the descending channel with wave B at (1.25942), and now we expect USD/CAD to finish its correction with wave C possibly reaching the 78.6% Fibonacci Extension level at (1.28111) as our first target, and if managed to break it, it can continue its way up reaching the 100% Fibonacci level at (1.28702) which is also the beginning of the descending channel.

Because the DXY deceived us and went back up to continue its correction towards the 92-92.5 area, we expect for USD/CAD that these 5 waves down, we can refer them as Big wave 1 to the downside and the ABC correction as Big wave 2 in order to continue its way down with Big wave 3 when the DXY finishes its correction.