USD/CAD – 1.2857
Trend: Near term up
Original strategy :
Bought at 1.2765, met target at 1.2915
Position: – Long at 1.2765
Target: – 1.2915
New strategy :
Although the greenback rose to as high as 1.2920 (our long position entered at 1.2765 met target at 1.2915 with 150 points profit), lack of follow through buying on break of previous resistance at 1.2917 and the subsequent retreat suggest further consolidation would be seen, risk of a pullback to 1.2800 cannot be ruled out, however, reckon support at 1.2738 would limit downside and indicated key support at 1.2713 would remain intact.
As we have taken profit on our long position entered at 1.2765, would not chase this rise here and would be prudent to stand aside in the meantime. Above 1.2920 would revive bullishness and extend recent rise 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.