USD/CAD – 1.3280
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 down
Original strategy :
Sell at 1.3350, Target: 1.3130, Stop: 1.3410
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3350, Target: 1.3130, Stop: 1.3410
Position: –
Target: –
Stop:-
As the greenback found support at 1.3191 and has rebounded, retaining our view that further consolidation above 1.3165 support (last week’s low) would be seen and another bounce to 1.3308, above there would bring retracement of recent fall to 1.3330 but 1.3360-65 would limit upside and bring another decline later, below said support at 13191 would bring retest of 1.3165 but break there is needed to confirm reentry decline from 1.3794 top has resumed and extend weakness to 1.3100-10 and later towards previous support at 1.3078.
In view of this, would be prudent to sell again on subsequent recovery as 1.3350-60 should limit upside. Above previous support at 1.3387 (now resistance) would defer and suggest low is possibly formed, bring a stronger rebound to 1.3420-25 but break there is needed to provide confirmation.
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.
