USD/CAD – 1.3360
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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 for headway to 1.4700
Trend:Â Near term up
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Original strategy      :
Sold at 1.3320, Target: 1.3120, Stop: 1.3380
Position: – Short at 1.3320
Target:Â – 1.3120
Stop: – 1.3380
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New strategy            :
Exit short entered at 1.3320,
Position: –
Target:Â –
Stop:-
Although the greenback did retreat after meeting resistance at 1.3338, as renewed buying interest emerged at 1.3262 and the pair has staged a strong rebound today, dampening our bearishness and near term upside risk remains for the rebound from 1.3223 to extend further gain to 1.3400, then 1.3425-30, however, only break of resistance at 1.3456 would revive bullishness and signal the correction from 1.3535 has ended, bring further gain towards this level later.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Below 1.3310-15 would suggest an intra-day top is possibly formed, bring test of said support at 1.3262 but break there is needed to signal the rebound from 1.3223 has ended, bring retest of this level first. Looking ahead, a break of 1.3223 would signal the erratic fall from 1.3535 has resumed for weakness to 1.3180-85 (61.8% Fibonacci retracement of 1.2969-1.3535), then towards 1.3120-25.Â
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.
