USD/CAD – 1.2673
Trend: Near term up
Original strategy :
Bought at 1.2820, stopped at 1.2760
Position: – Short at 1.2820
Stop: – 1.2760
New strategy :
Sell at 1.2800, Target: 1.2600, Stop: 1.2860
The greenback faltered below resistance at 1.2917 and has tumbled, suggesting further consolidation below said resistance would be seen and the breach of previous support at 1.2665 suggests bearishness remains for weakness to 1.2600-10, however, loss of near term downward momentum should prevent sharp fall below 1.2550 and price should stay well above 1.2500-10.
In view of this, we are looking to turn short on recovery as 1.2790-00 should limit upside and bring another decline later. Above 1.2850-60 would risk test of 1.2890-00 but only break of said resistance at 1.2917 would revive bullishness and extend recent upmove to 1.2975-80 (61.8% Fibonacci retracement of 1.3547-1.2061), then towards psychological resistance at 1.3000.
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.