USD/CAD – 1.2833
Trend: Near term up
Original strategy :
Sold at 1.2800, stopped at 1.2860
Position: – Short at 1.2800
Stop: – 1.2860
New strategy :
The greenback found decent demand at 1.2623 and staged a much stronger-than-expected rebound, dampening our bearishness and suggesting low has been formed there at 1.2623, hence upside risk remains for gain to 1.2875-80 but break of resistance at 1.2917 is needed to confirm upmove has resumed for headway to 1.2975-80 (61.8% Fibonacci retracement of 1.3547-1.2061), then towards psychological resistance at 1.3000.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 1.2760-65 would prolong choppy trading and bring weakness to 1.2700-05, however, downside should be limited to 1.2650-55 and price should stay above said support at 1.2623, 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.