Due to holidays, next update will be posted on Oct 9.
USD/CAD – 1.2478
Â
Original strategy      :
Buy at 1.2360, Target: 1.2560, Stop: 1.2300
Position: –
Target:Â –
Stop: –
Â
New strategy            :
Buy at 1.2360, Target: 1.2560, Stop: 1.2300
Position: –
Target:Â –
Stop:-
As the greenback ran into resistance at 1.2519 and retreated, suggesting consolidation below this level would be seen and pullback to 1.2400 cannot be ruled out, however, reckon 1.2350-60 would contain downside and bring another rise later, above said resistance at 1.2519 would extend the erratic rise from 1.2061 low to 1.2550, then towards 1.2590-00, however, near term overbought condition should limit upside and reckon resistance at 1.2663 would remain intact.Â
In view of this, would not chase this rise here and would be prudent to buy again on pullback as 1.2360-70 should limit downside. Below indicated support at 1.2313 would defer and risk weakness to 1.2254 support (Friday’s low) but only break of latter level would signal top is possibly formed, bring test of previous support at 1.2197, below this level would confirm and 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.
