USDCAD: Why the Trend Remains Bullish Despite Extended Wave 5

 Markets often confuse extension with exhaustion.

USDCAD is a textbook example of why that assumption can be dangerous.

🔹 Big Picture Context

On the monthly timeframe, USDCAD continues to respect a long-standing rising channel, confirming that the dominant trend remains intact. The current phase fits best with an extended Wave 5, characterized by:

• Time-based consolidation

• Overlapping price action

• Momentum digestion without structural damage

This is not a reversal pattern — it is a continuation structure until proven otherwise.

🔹 Why This Is Not a Top

• No confirmed bearish divergence on higher timeframes

• No impulsive downside break

• No channel violation

Extended Wave 5 phases are known to move slowly, frustrate participants, and consolidate internally before the next directional resolution.

🔹 What Would Change the View

The bullish structure would only come into question if price breaks and sustains below the rising channel, signaling a higher-degree trend transition.

Until then, the path of least resistance remains structurally upward.

🧠 Key Takeaway

Trend maturity does not equal trend termination.

Structure always leads. Emotion follows.

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Disclaimer:
This analysis is for educational and research purposes only. It is not investment advice. Markets involve risk.

https://in.tradingview.com/chart/USDCAD/hiREZrsf-USDCAD-Monthly-Wave-5-Extended-Structure-Intact/

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