AUD/USD – 0.7541
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
Original strategy :
Buy at 0.7500, Target: 0.7650, Stop: 0.7440
Position: –
Target: –
Stop: –
New strategy :
Buy at 0.7500, Target: 0.7650, Stop: 0.7440
Position: –
Target: –
Stop:-
Aussie’s retreat after rising to 0.7567 earlier this week suggests consolidation below this level would be seen and pullback to previous resistance at 0.7518 is likely, however,r reckon 0.7500 would limit downside and bring another rise later, above said resistance would extend the rise from 0.7329 low towards 0.7592, then test of resistance at 0.7611 but break of latter level is needed add credence to this bullish count and encourage for subsequent upmove towards resistance at 0.7680 but price should falter below chart point at 0.7750.
In view of this, we are looking to buy aussie on dips as 0.7500 should limit downside and bring another rise. Below support at 0.7457 would abort and suggest top is possibly formed, bring weakness to 0.7415-20 but price should stay well above key support at 0.7372, bring another rebound later.
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.
