USD/CAD – 1.3492
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
Original strategy :
Sell at 1.3540, Target: 1.3340, Stop: 1.3600
Position: –
Target: –
Stop: –
New strategy :
Sell at 1.3550, Target: 1.3350, Stop: 1.3610
Position: –
Target: –
Stop:-
Although the rebound from 1.3387 (last week’s low) suggests consolidation above this level would be seen and corrective bounce to 1.3530-35 (38.2% Fibonacci retracement of 1.3770-1.3387) cannot be ruled out, however, reckon upside would be limited to resistance at 1.3540-50 and bring another decline, below said support at 1.3387 would extend the fall from 1.3794 top for further weakness to 1.3350, then towards 1.3300 but 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 be prudent to sell on further recovery as 1.3540 resistance should limit upside, bring another decline. Above 1.3571-79 (previous support and 50% Fibonacci retracement of 1.3770-1.3387) would defer and suggest a temporary low is formed instead, risk a stronger rebound to 1.3600 but still reckon resistance at 1.3670 would remain intact.
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.
