AUD/USD – 0.7668
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 up
Original strategy :
Bought at 0.7595, Target: 0.7745, Stop: 0.7555
Position: – Long at 0.7595
Target:Â – 0.7745
Stop: – 0.7555
New strategy :
Hold long entered at 0.7595, Target: 0.7745, Stop: 0.7615
Position: – Long at 0.7595
Target:Â – 0.7745
Stop:- 0.7615
As aussie has finally surged and broke above previous resistance at 0.7636, adding credence to our bullish view for resumption of recent upmove and upside bias remains for the rise from 0.7329 to extend gain to 0.7700 but loss of momentum should limit upside to chart resistance at 0.7750 and price should falter below 0.7785-90.
In view of this, we are holding on to our long position entered at 0.7595. Below previous resistance at 0.7625 (now support) would defer and risk weakness to 0.7600 but only break of support at 0.7577 would signal top is formed instead, bring correction towards support at 0.7535 which is likely to hold from here.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.
