AUD/USD – 0.8100
Original strategy:
Buy at 0.7925, Target: 0.8125, Stop: 0.7865
Position: –
Target:Â –
Stop:-
New strategy :
Buy at 0.8050, Target: 0.8200, Stop: 0.7990
Position: –
Target:Â –
Stop:-
As aussie has surged in part due to broad-based weakness in the greenback and the breach of previous resistance at 0.8066 (wave iii top) confirms recent upmove has resumed and current wave v may extend further gain to 0.8150, then towards 0.8200, however, near term overbought condition should prevent sharp move beyond 0.8225-30 and price should falter below 0.8250-60, risk from there is seen for a retreat later.
In view of this, we are looking to buy aussie on pullback but at a higher level as 0.8050 should limit downside. Below 0.8000 would defer and risk test of support at 0.7963 but break there is needed to signal a temporary top is formed instead, risk correction to 0.7920-25 first.Â
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.
