USD/CAD – 1.2317
Trend: Down
Original strategy :
Bought at 1.2285, Target: 1.2450, Stop: 1.2225
Position: – Long at 1.2285
Target: – 1.2450
Stop: – 1.2225
New strategy :
Hold long entered at 1.2285, Target: 1.2450, Stop: 1.2250
Position: – Long at 1.2285
Target: – 1.2450
Stop:- 1.2250
As the greenback found support at 1.2254 on Friday and has rebounded, retaining our bullishness for another bounce to 1.2350-55, above there would bring test of indicated resistance at 1.2391, break of this last week’s high would add credence to our view that a temporary low has been made at 1.2061 earlier this month, bring retracement of recent decline to resistance at 1.2425-30, then 1.2450, however, near term overbought condition should limit upside and reckon 1.2500 would hold from here, bring retreat later.
In view of this, we are holding on to our long position entered at 1.2285. Only below indicated support at 1.2197 would abort and signal top is formed instead, bring weakness to 1.2160-65, then towards support at 1.2121, break there would confirm the rebound from 1.2061 has ended and bring retest of this level later, 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.
