USD/CAD – 1.2565
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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 with wave iii ended at 1.4690, wave v of C may bring one more marginal rise probably in 2018
Trend:Â Down
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Original strategy      :
Sell at 1.2765, Target: 1.2565, Stop: 1.2825
Position: –
Target:Â –
Stop: –
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New strategy            :
Sell at 1.2765, Target: 1.2565, Stop: 1.2825
Position: –
Target:Â –
Stop:-
The greenback has continued trading defensively after recent selloff, adding credence to our view that recent downtrend is still in progress, we took the 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 still in progress, hence bearishness remains for this fall to extend weakness to 1.2500-10, however, oversold condition should prevent sharp fall below 1.2440-50 and reckon 1.2400 would hold, risk from there is seen for a rebound later.
In view of this, would not chase this fall here and would be prudent to sell the pair again on recovery as 1.2760-70 should limit upside. Above 1.2800-10 would defer and risk a stronger rebound to 1.2850-60 but only break of latter level would signal a temporary low is formed instead, bring retracement of recent decline to 1.2900-10, then 1.2940-50, however, price should falter below 1.3000 and the greenback shall head south again from there.
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.
