USD/CAD – 1.3460
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 down
Original strategy :
Buy at 1.3300, Target: 1.3450, Stop: 1.3240
New strategy :
Buy at 1.3375, Target: 1.3525, Stop: 1.3315
The greenback has surged again today, adding credence to our bullish view that recent upmove from 1.2969 low is still in progress and may extend further gain to 1.3500-10, then towards resistance at 1.3558 but loss of near term upward momentum should prevent sharp move beyond 1.3590-00, risk from there is seen for a retreat to take place later.
In view of this, would not chase this rise here and would be prudent to buy on pullback as minor support at 1.3372 should limit downside and bring another rise later. Below 1.3320-25 would defer and suggest top is possibly formed, risk correction to 1.3290-00 and possibly 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.