USDCAD US Dollar vs. Canadian DollarFX:USDCADabdeslammariyawas planning to publish an analysis for a different instrument this week, but since last week’s USD/CAD analysis received a lot of engagement and many of you shared your thoughts on the possible scenarios, I decided to follow up and review how the market actually played out. As you can see, price moved very close to Scenario 2 from last week’s analysis. Price initially reacted from the demand zone we identified, then after the Panic wave, it retraced into the M Waves 2 zone (1). From there, it resumed its decline, forming the Despair wave, which also terminated within another M Waves2 demand zone, just as anticipated. At this stage, price is once again trading at a critical area, and I see two possible scenarios going forward. ✅ Scenario 1: The Despair phase is complete, and a new bullish campaign begins If price manages to confirm the reversal conditions, the Despair phase may already be over, allowing the market to transition into a Medium Markup phase. A confirmed break above the bearish trend-defining level would further strengthen the case for a Major Markup. This scenario is supported by: 📌 Increased trading volume near the Despair low, which often suggests accumulation and the possible end of the corrective phase. 📌 Looking at the higher-degree structure, the broader trend still favors the bullish side. ✅ Scenario 2: The correction is not over yet If price fails to confirm the reversal conditions, the correction may continue, with a retest of the M waves 2 (2) or even a move toward 1.41300 and 1.41100 before a meaningful reversal develops. 📍 Important note: The major liquidity line has not yet been confirmed as broken (two-candle confirmation). Therefore, it is still too early to conclude that the correction has ended. Price action confirmation remains essential.