Trade Idea: USD/CAD - Buy at 1.3450

USD/CAD – 1.3530

Recent wave: Only wave v of c has ended at 0.9407 and wave C of major A-B-C correction is underway for headway to 1.4700

Trend:  Near term up

Original strategy       :

Buy at 1.3485, Target: 1.3630, Stop: 1.3425

Position: –

Target:  –

Stop: –

New strategy             :

Buy at 1.3450, Target: 1.3630, Stop: 1.3390

Position: –

Target:  –

Stop:-

As the greenback has retreated after rising to 1.3589 yesterday, suggesting consolidation below this level would be seen and pullback to 1.3490-00 is likely, however, reckon 1.3440-50 would limit downside and bring another upmove later, above said resistance at 1.3589 would extend gain to 1.3600-10, then towards 1.3650 but overbought condition should limit upside and 1.3700 should hold from here.

In view of this, would be prudent to buy on subsequent pullback as 1.3450-55 should limit downside. Below 1.3425-30 would abort and suggest a temporary top is possibly formed, bring test of 1.3365-70 and possibly towards 1.3300-10 but price should stay well above support at 1.3264, bring another rally 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.

Trade Idea: USD/CAD - Buy at 1.3450