USD/CAD – 1.0524
Recent wave: Only wave iii of c has ended at 0.9931
Trend: Sideways
Original strategy :
Bought at 1.0510, Target: 1.0720, Stop: 1.0440
New strategy :
Hold long entered at 1.0510, Target: 1.0720, Stop: 1.0470
Despite intra-day retreat to 1.0473, as the greenback has rebounded from there, retaining our bullishness and as long as this level holds, upside bias remains for another bounce to 1.0600, then test of Friday’s high of 1.0650, break there would signal the rise from 1.0108 has resumed and bring retest of key resistance area at 1.0678-80. Looking ahead, only above there would retain bullishness and extend recent c leg of wave iv towards 1.0750/60 but reckon previous resistance at 1.0854 (wave a top) would hold from here.
Our latest preferred count, only a leg of wave iv has ended at 1.0854, followed by wave b at 1.0108 and the rally from there is the c leg with (i): 1.0494, (ii): 1.0247 and wave (iii) is now in progress for gain to aforesaid upside targets.
In view of this, we are holding on to our long position entered at 1.0510. Break of said support at 1.0473 would risk weakness to 1.0445 but only below there would abort and signal top has been formed and risk 1.0400.
