USD/CAD – 1.3464
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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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New strategy            :
Stand aside
Position: –
Target:Â –
Stop:-
The greenback has fallen again after brief recovery, suggesting the decline from 1.3794 top is still in progress and downside risk remains for this move to bring a stronger retracement of recent rise, hence weakness to 1.3411 support cannot be ruled out, however, near term oversold condition should prevent sharp fall below there and reckon 1.3350-60 would hold, bring rebound later.
In view of this, would not chase this fall here and would be prudent to stand aside in the meantime. Above 1.3505-10 would bring recovery to 1.3540-45 but only break of previous support at 1.3571 would signal low is formed, bring a stronger rebound to 1.3630-35 but resistance at 1.3670 should remain intact.
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.
