AUD/USD – 0.7608
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
New strategy :
Sell at 0.7635, Target: 0.7500, Stop: 0.7685
Position: –
Target: –
Stop:-
Aussie’s retreat after rising to 0.7712 suggests top has possibly been formed there and consolidation with mild downside bias is seen for test of 0.7575-80, however, break there is needed to signal a temporary top has been formed, bring further all to 0.7535 support but break there is needed to add credence to this view, bring correction of recent rise to 0.7500.
In view of this, we are looking to sell aussie on recovery as 0.7635-40 should limit upside. Above 0.7655-60 would risk test of intra-day resistance at 0.7683 but only break there would signal the retreat from 0.7712 has ended instead, bring retest of this level 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.
