USD/CAD – 1.3725
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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:Â Near term up
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Original strategy      :
Buy at 1.3600, Target: 1.3750, Stop: 1.3540
Position: –
Target:Â –
Stop: –
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New strategy            :
Buy at 1.3600, Target: 1.3750, Stop: 1.3540
Position: –
Target:Â –
Stop:-
As the greenback has maintained a firm undertone after recent rally above 1.3599 resistance, adding credence to our view that recent upmove is still in progress and bullishness remains for further gain to 1.3760-70, however, near term overbought condition should prevent sharp move beyond 1.3800-10 and reckon 1.3840-50 would hold on first testing, risk from there is seen for a retreat to take place later.Â
In view of this, would not chase this rise here and would be prudent to buy again on pullback as 1.3600 should limit downside. Only below said support at 1.3530 would abort and signal a temporary top is formed instead, risk correction to 1.3500 and later towards 1.3450-60 but support at 1.3411 should remain intact, bring another upmove 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.
