USD/CAD – 0.9996
Recent wave: Only wave v of c has ended at 0.9407 and A-B-C correction has possibly ended at 1.0658
Trend: Near term down
Original strategy :
Buy at 0.9880, Target: 1.0030, Stop: 0.9820
Position: -
Target: -
Stop:-
New strategy :
Buy at 0.9900, Target: 1.0050, Stop: 0.9840
Position: -
Target: -
Stop:-
As the greenback has continued to trade with a firm undertone after staging a strong rebound from 0.9800, adding credence to our view that a temporary low has been formed at 0.9800 and intra-day breach of previous resistance at 1.0053 suggests near term bullishness remains for retracement of recent downtrend to 1.0080 and 1.0100, however, near term overbought condition should limit upside to 1.0150 and risk is seen for a retreat later.
In view of this, we are still looking to turn long on dips as support at 0.9862 (Friday’s low) should limit downside. Only breach of 0.9828 would revive bearishness and bring a retest of recent low at 0.9800, break there would extend recent decline in wave C from 1.0524 to 0.9758 (100% projection of 1.0658-0.9892 measuring from 1.0524), however, near term oversold condition should limit downside to 0.9720/25 and still reckon 0.9700 would hold, risk from there has increased for a rebound to take place later.
To recap, early breach of 1.0108 signals the wave iv from 0.9931 has ended at 1.0854 or 1.0674 (with a short (c)), under this count, the wave v has commenced with minor wave (i) ended at 0.9980 and wave (ii) has possibly ended at 1.0287 with (a) at 1.0374, (b): 0.9977 and a short (c) at 1.0287, the breach of 0.9931 confirms wave (iii) is unfolding for weakness towards 0.9200-10 (50% projection of 1.0854-0.9446 measuring from 0.9914).
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