USD/CAD – 1.3436
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
New strategy :
Sell at 1.3500, Target: 1.3300, Stop: 1.3560
Although the greenback retreated after rising to 1.3599 last week, suggesting top has possibly been formed there and consolidation with mild downside bias is seen for retracement of recent rise, below 1.3385-90 would add credence to this view and extend weakness to 1.3355-60, then towards 1.3300-10 later which is likely to contain downside.
In view of this, we are looking to sell on recovery as 1.3500-10 should limit upside. Only above resistance at 1.3558 would abort and signal the retreat from 1.3599 has ended, bring retest of this level first, once this resistance is penetrated, this would extend recent upmove to 1.3650-60 first.
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.