AUD/USD – 0.7530
Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10
Trend: Near term down
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Although aussie extended recent decline to as low as 0.7440 last week, lack of follow through selling and the subsequent rebound to 0.7556 suggest low has possibly been formed there and consolidation with mild upside bias is seen, break of said resistance would extend gain to resistance at 0.7592 but a sustained breach above this level is needed to add credence to this view, bring further subsequent rise to 0.7611.
In view of this, would not chase this rise here and would be prudent to stand aside in the meantime. Only below 0.7490-95 would suggest top is possibly formed, bring weakness to 0.7465-70 but break of said support at 0.7440 is needed to signal recent decline has once again resumed and extend fall to 0.7390-00 first.
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.
