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USDCAD is now reversing higher again after only three legs down to the 1.0260 area where we see evidences of a completed corrective pull-back, labelled as A-B-C ,called a zig-zag.

Notice that the rally from 1.0260 is sharp and now already testing upper trend-line of a corrective channel. A break here is in view and that may lift pair up to 1.0500.

USDCAD Elliott Wave Analysis Technical View for Currency Trading forex

What is a zig-zag?

A zig-zag Elliott Wave pattern is a corrective pattern is labeled with letters and moves against the larger trend.  It’s a 3-wave structure labeled A-B-C, generally moving counter to the larger trend.

It is one of the most common corrective Elliott patterns.

zig-zag Elliott Wave Pattern explained