USD/CAD – 1.3088
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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 down
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Original strategy      :
Sold at 1.3295, met target at 1.3130
Position: – Short at 1.3295
Target:Â – 1.3130
Stop: –
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New strategy            :
Sell at 1.3170, Target: 1.3020, Stop: 1.3230
Position: – Short at 1.3295
Target:Â – 1.3130
Stop:- 1.3265
Current anticipated selloff has justified our bearish view for recent decline to resume and our short position entered at 1.3295 met indicated downside target at 1.3130 (with 165 points profit), as price has remained under pressure, adding credence to our downside bias for the decline from 1.3794 top to extend further fall to 1.3020-30, then test of psychological support at 1.3000, however, near term oversold condition should limit downside to 1.2940-50 today, risk from there has increased for a rebound later.
As we have taken profit on our short position entered at 1.3295, would not chase this fall here and we are looking to reinstate short on recovery as previous support at 1.3165 should turn into resistance and limit upside. Above 1.3210-15 would defer and risk rebound to 1.3260-65 but only break there would abort and signal a temporary low is formed instead, then test of resistance at 1.3308 would follow.
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.
