The USD/CAD pair is correcting amid unstable dynamics of the US currency, trading at 1.3972: the Canadian dollar is supported by a reduction in the interest rate differential between the regulators of the two countries.

The probability of the pair’s growth remains.

On the daily chart, the downward correction as the second wave of the higher level (2) has completed, after which the development of the third wave (3) and the third wave 3 of (3) has begun. Currently, an entry first wave of the lower level i of 3 is forming, within which the third wave (iii) of i and the correction as the fourth wave (iv) of i have ended, and the construction of the fifth wave (v) of i is underway. If the assumption is correct, the USD/CAD pair will grow toward the 1.4540–1.4790 range. The critical stop loss level for this scenario is 1.3960.

The USD/CAD pair is moving within a medium-term upward trend, forming a corresponding channel. At the beginning of the month, it reached 1.4282 (Murrey [5/8], Fibonacci retracement 61.8%), but failed to break higher and began a corrective decline.