USD/CAD – 1.2682
Trend: Near term up
Original strategy :
Sold at 1.2720, stopped at 1.2780
Position: – Short at 1.2720
Stop: – 1.2780
New strategy :
The greenback continued finding decent demand above previous support at 1.2665, suggesting further consolidation above this level would be seen and test of indicated resistance at 1.2937 cannot be ruled out, however, a sustained breach above there is needed to revive bullishness and signal the pullback from 1.2917 top has ended, bring further gain to 1.2880, then retest of this level later.
On the downside, below 1.750 would bring weakness to 1.2700-10 but said support at 1.2665 should remain intact, bring another rebound later. Only a break of 1.2665 would signal another leg of decline from 1.2917 top is underway for weakness to support at 1.2636, below there would bring stronger correction of recent rise to 1.2600 and later towards 1.2550-60
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.