AUD/USD – 0.7659
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 :
Exit long entered at 0.7595
Position: – Long at 0.7595
Target: –
Stop: –
New strategy :
Stand aside
Position: –
Target: –
Stop:-
Despite rising to 0.7712 late last week, the subsequent retreat has retained our view that minor consolidation below this level would be seen and pullback to 0.7635-40 is likely, however, a break below previous resistance at 0.7625 would suggest a temporary top is possibly formed, further all to 0.7575-80 but break there is needed to add credence to this view, bring correction of recent rise to 0.7535 support which is likely to hold from here.
In view of this, would be prudent to stand aside for now and look to reinstate long on pullback. Above said resistance at 0.7712 would extend recent upmove to chart resistance at 0.7750 but overbought condition should limit upside and price should falter below 0.7785-90.
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.
