USDCAD – Potential Wave B / Wave 3 Upside SetupUS Dollar vs. Canadian DollarFX:USDCADwavemaster_On the higher timeframe (Daily), the primary expectation is that USDCAD is developing a larger WXY correction to the downside. Wave W and Wave X appear to be completed, with the market now developing Wave Y to the downside. The structure also leaves room for an alternative count, where the WXY-pattern may have already been completed earlier. In this scenario, the current decline could represent a Wave 2, with a potential Wave 3 to the upside still ahead. Interestingly, both scenarios currently point towards the same near-term direction: higher. On the lower timeframe (4H), Wave (a) of the current downside move developed as a clear five-wave impulse, with a strongly extended Wave iii- subwaves shown in green. Following the completion of the impulse down, price formed a leading diagonal, marking the beginning of the new move to the upside. After this first move a small term correction has to happen and price has already shown a notable reaction from the relevant Fibonacci levels, giving us additional confluence for a potential continuation higher. A first confirmation level for bullish price action is located at 1.38729. A break above this level would strengthen the case that the current corrective structure has completed and that the next move higher is beginning. The key invalidation level for the primary count remains at 1.42473, the high of Wave X (highest degree). The good part is that the alternative count would also support further upside from the current area. This means the exact count does not necessarily need to be resolved immediately. Both scenarios currently support the same directional bias. Additional confluence comes from our current DXY structure, which also supports the bullish USD/CAD scenario. This is a scenario based on structure and confirmation. The count remains subject to change if the market invalidates the current structure.