Trade Idea: USD/CAD - Sell at 1.3430

USD/CAD – 1.3394

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 1.3250, Target: 1.3430, Stop: 1.3190

Position: –

Target:  –

Stop: –

New strategy             :

Sell at 1.3430, Target: 1.3250, Stop: 1.3490

Position: –

Target:  –

Stop:-

Although the greenback rose briefly to 1.3466, lack of follow through buying and current retreat suggest consolidation would be seen with mild downside bias for test of support at 1.3353, break there would suggest top is possibly formed, bring retracement of recent rise to 1.3300 and then 1.3275-80, however, reckon downside would be limited to 1.3235-40 and reckon 1.3215-20 would hold.

In view of this, we are looking to turn short on recovery. Above said resistance at 1.3466 would signal recent erratic rise is still in progress and may extend further gain to 1.3490-00 but loss of upward momentum should prevent sharp move beyond 1.3550 and reckon 1.3600-10 would hold from here.

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 - Sell at 1.3430