AUD/USD – 0.7948
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Despite rising to 0.7995 on Friday, as aussie has retreated again after faltering below resistance at 0.7996, suggesting further choppy trading within recent established broad range would take place and weakness to 0.7920-25 cannot be ruled out, however, reckon downside would be limited to 0.7890-00 and support at 0.7871 would remain intact, bring another rebound later. A drop below 0.7871 would suggest the erratic rise from 0.7808 has ended, brig further fall to 0.7850 but price should stay above said support at 0.7808 due to near term oversold condition.
On the upside, expect recovery to be limited to 0.7970 and said resistance at 0.7996 should remain intact, bring another retreat later. Above this level would revive bullishness and signal the pullback from 0.8066 has ended earlier at 0.7808, bring further gain to 0.8040-43, then subsequent retest of this level which is likely to hold from here.
On the 4-hour chart, the move from 0.8066 is the wave 5 with i: 0.8860, ii: 0.8315, wave iii is an extended move ended at 1.0183, iv: 0.9706 and wave v has ended at 1.1081 (also the top of entire wave 5). The subsequent selloff is the major correction which is unfolding as ABC-X-ABC and 2nd A leg has ended at 0.8848, followed by a-b-c wave B which ended at 0.9758, hence, 2nd C wave is now in progress and indicated downside target at 0.7000 and 0.6950 had been met, so further fall to 0.6710-20 cannot be ruled out.
