A sharp decline in the exchange rate of the USD/CAD currency pair on the weekly chart, during which the last candle closed below the MA200 moving average line, made me consider an alternative scenario for its development. The fact that the actual fixing of the pair's quotes below the specified line indicates a possible local, yet bearish scenario for its development. Since we are dealing with the final wave "c" of a descending zigzag "abc", the most likely option for forming its internal structure will be a contracting ending diagonal. This is because the first two of its previously completed waves are zigzags. Confirmation of this wave development scenario for the pair will be the mandatory update of the end of the 1st wave (level 1.3481) of the potential diagonal. Once this happens, it means that this wave forecast for the pair's development will be justified. Currently, the pair's minimum is at 1.3549, which is not far from the indicated local target.
