Trade Idea: USD/CAD – Sell at 1.3540

USD/CAD – 1.3415

 
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             :

Sell at 1.3540, Target: 1.3340, Stop: 1.3600

Position: –

Target:  –

Stop:-

As the greenback has fallen again after brief recovery to 1.3540 yesterday, suggesting the decline from 1.3792 top is still in progress and bearishness remains for further weakness to 1.3350, then towards 1.3300, however, loss of near term downward momentum should prevent sharp fall below 1.3250-60, risk from there has increased for a rebound to take place later.

In view of this, would not chase this fall here and we are looking to sell on recovery as 1.3530-40 should limit upside, bring another decline. Above 1.3600 would abort and suggest low is possibly formed, risk test of resistance at 1.3670, break there would add credence to this view, bring further gain to 1.3700 first.

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.