USD/CAD – 1.3486
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 :
Buy at 1.3350, Target: 1.3550, Stop: 1.3290
Position: –
Target: –
Stop: –
New strategy :
Buy at 1.3350, Target: 1.3550, Stop: 1.3290
Position: –
Target: –
Stop:-
Although the greenback recovered after finding support at 1.3421, as long as last week’s high at 1.3535 holds, further consolidation is in store and risk another another corrective fall to 1.3421 cannot be ruled out, however, reckon downside would be limited to 1.3390-00 and reckon 1.3350-55 (38.2% Fibonacci retracement of 1.3056-1.3535) would limit downside and bring another rise later, above said resistance at 1.3535 would extend recent upmove for further gain to 1.3570-75 and possibly towards 1.3600 but near term overbought condition should prevent sharp move beyond 1.3640-50, bring retreat later.
In view of this, would not chase this rise here and would be prudent to buy on further pullback as 1.3350 should limit downside. Only below 1.3295-00 (50% Fibonacci retracement of 1.3056-1.3535) would signal top is formed, risk correction to 1.3250-60 but price should stay well above indicated previous resistance at 1.3212 (now support), bring another rise later.
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.
