USD/CAD – 1.2890
Trend: Near term up
New strategy :
Buy at 1.2820, Target: 1.3000, Stop: 1.2760
The greenback has rallied after holding above support at 1.2672 and bore above resistance at 1.2837, suggesting correction from 1.2917 has ended and retest of this level would be seen, however, break there is needed to confirm recent rise has resumed and extend gain to 1.2975-80 (61.8% Fibonacci retracement of 1.3547-1.2061), then towards psychological resistance at 1.3000 but near term overbought condition should limit upside to 1.3050-55 and price should falter well below 1.3130-35 (61.8% Fibonacci retracement of 1.3794-1.2061), bring retreat later.
In view of this, we are looking to buy on pullback as 1.2810-20 should limit downside and bring another rise later. Below 1.2770-75 would defer and prolong choppy trading, risk weakness to 1.2745-50, then towards 1.2700-10 but price should stay well above said support at 1.2672, bring another rebound 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.