Trade Idea: USD/CAD - Buy at 1.0970

Oleh Unknown

Senin, 22 September 2014

USD/CAD - 1.1058

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 1.1400

Trend: Near term up

Original strategy :

Buy at 1.0990, Target: 1.1150, Stop: 1.0930

Position: - :

Target: -

Stop:-

New strategy :

Buy at 1.0970, Target: 1.1150, Stop: 1.0920

Position: -

Target: -

Stop:-

As the greenback has eased after intra-day marginal rise to 1.1099, suggesting minor consolidation would be seen and correction to 1.1000-10 cannot be ruled out, however, reckon downside would be limited to 1.0960-70 and bring another rise later, above said resistance would extend recent rise from 1.0621 low to 1.1150 but near term overbought condition should limit upside to 1.1200 and price should falter well below resistance at 1.1279, risk from there is seen for another retreat later.

In view of this, we are still looking to buy on subsequent pullback as 1.0970 should limit downside. Only break of 1.0934 support would abort and suggest top is formed instead and risk weakness to 1.0890-00, then towards 1.0840. In the event the pair drops below support at 1.0811, this would confirm and bring weakness to 1.0790-00 and possibly 1.0750 but previous support at 1.0709 should remain intact.

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 initial target at 1.0500 has been met and further gain to 1.1300 would be seen later.