USD/CAD – 1.3586
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
New strategy :
Buy at 1.3500, Target: 1.3650, Stop: 1.3440
Position: –
Target: –
Stop:-
As the greenback has maintained a firm undertone after this week’s anticipated rally, suggesting recent upmove is still in progress and bullishness remains for 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 on first testing, risk from there is seen for a retreat to take place later.
In view of this, would not chase this rise here and would be prudent to buy again on pullback as 1.3500 should limit downside. Below 1.3440-50 would defer and suggest top is possibly formed but break of indicated support at 1.3411 is needed to provide confirmation, bring further fall to 1.3350 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.
