S&P 500 at 8,000, gold at $5,400, Tesla to double: Here are top trades for 2026
USD/CAD might be seeing a bigger triangle correction unfolding within the higher-degree wave IV that has been in place since the beginning of 2016, after the higher-degree wave III found a top. We see the price trading steadily sidewise, which is typical of a triangle consolidation.
A triangle is a five-wave pattern, which is completed before the final leg higher, meaning one more push up can be expected, once that triangle fully develops. At the moment, we see the price ending a sub-wave C of a triangle in IV, so watch out for a three-wave rally as D in the days, or weeks, ahead.
Once all five legs are fully visible within a triangle: A-B-C-D-E, and we see a solid break above the upper triangle line, that is when final larger wave V might come into play, bringing with it, a target above the C$1.50 zone.
A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to E, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping, five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
An example of a triangle correction:
Trade well!