USD/CAD – 1.2259
Â
New strategy            :
Stand aside
Position: –
Target:Â –
Stop:-
Although the greenback has retreated after rising to 1.2338 and consolidation below this level would be seen, reckon downside would be limited to 1.2200 and 1.2170-75 should hold, bring another rebound later, above 1.2300 would bring test of said resistance at 1.2338, break there would signal a temporary low has been formed at 1.2061 earlier, bring retracement of recent decline 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 1.2200 would bring weakness to 1.2170-75 but break there is needed to suggest the rebound from 1.2061 low has ended, bring further all towards support at 1.2121, break there would confirm and bring retest of 1.2061 later, break there would signal 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.
