Trade Idea: USD/CAD – Target met and stand aside

USD/CAD – 1.3588

 
Recent wave: Only wave v of c has ended at 0.9407 and wave C of major A-B-C correction is underway for headway to 1.4700

Trend:  Near term up

 
Original strategy       :

Bought at 1.3430, met target at 1.3590

Position: – Long at 1.3430

Target:  – 1.3590

Stop: –

 
New strategy             :

Stand aside

Position: – Long at 1.3430

Target:  – 1.3590

Stop:- 1.3410

Current anticipated rally adds credence to our bullish view and the breach of previous resistance at 1.3599 confirms early upmove has resumed, hence upside bias remains for recent rise to extend further gain to 1.3650-60, however, near term overbought condition should prevent sharp move beyond 1.3690-00 and reckon 1.3750-60 would hold from here, bring retreat later. 

As we have taken profit on our long position entered at 1.3430, would not chase this rise here and would be prudent to stand aside for now, then look to buy again on subsequent pullback as 1.3500 should limit downside. Below 1.3465-70 would risk weakness to 1.3430 but indicated support at 1.3411 should contain downside and bring rebound later.

To recap, wave B from 1.3066 is unfolding as an a-b-c and is sub-divided as a: 1.2192, b: 1.2716 and wave c is a 5-waver with i: 1.1983, ii: 1.2506, extended wave iii with minor iii at 1.0206, wave iv ended at 1.0781 and wave v as well as wave iii has ended at 0.9931, hence the subsequent choppy trading is the wave iv which is unfolding as (a)-(b)-(c) with (a) leg of iv ended at 1.0854, followed by (b) leg at 1.0108 and (c) leg as well as the wave iv ended at 1.0674. The wave v is sub-divided by minor wave (i): 0.9980, (ii): 1.0374, (iii): 0.9446, (iv): 0.9913 and (v) as well as v has possibly ended at 0.9407, therefore, consolidation with upside bias is seen for major correction, indicated target at 1.3700 and 1.4000 had been met and further gain to 1.4700 would be seen later.