USD/CAD – 1.2848

Trend:  Near term up

 
Original strategy       :

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Buy at 1.2765, Target: 1.2915, Stop: 1.2705

Position: –

Target:  –

Stop: –

 
New strategy             :

Buy at 1.2765, Target: 1.2915, Stop: 1.2705

Position: –

Target:  –

Stop:-

The greenback retreated after meeting resistance at 1.2880 and further consolidation below this level would be seen, however, reckon downside would be limited to 1.2750-60 and bring another rise, above 1.2880 would extend the rebound from 1.2623 towards resistance at 1.2917 but break there 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 buy on subsequent pullback as 1.2750-60 should limit downside. Only below 1.2705-10 would abort and prolong choppy trading, bring weakness to 1.2650-55, however, downside should be limited 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.

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