USD/CAD – 1.2290
Trend:Â Down
Â
Original strategy      :
Sold at 1.2240, stopped at 1.2240
Position: – Short at 1.2240
Target:Â –
Stop: – 1.2240
Â
New strategy            :
Stand aside
Position: –
Target:Â –
Stop:-
The greenback has jumped again today and broke above resistance at 1.2240, suggesting a temporary low has possibly been formed at 1.2061 earlier and upside risk remains the rebound from there to bring retracement of recent decline, above 1.2335-40 would bring further gain to 1.2390-00 but reckon resistance at 1.2425-30 would hold from here, bring retreat later.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 1.2220-25 would bring weakness to 1.2170-75 but only break of support at 1.2121 would signal the rebound from 1.2061 has ended, bring retest of this level later, break there would extend recent decline has resumed and extend weakness towards psychological support at 1.2000. We are keeping our count that wave v as well as wave (C) ended at 1.3794 and impulsive wave (i ii, i ii) is now unfolding with minor wave iii ended at 1.2414, followed by wave iv correction ended at 1.2778, wave v has reached our indicated downside target at 1.2100 and may extend to 1.2000.
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.
