AUD/USD – 0.8032
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 :
Buy at 0.7800, Target: 0.7990, Stop: 0.7740
Position: –
Target:Â –
Stop: –
New strategy :
Buy at 0.7890, Target: 0.8090, Stop: 0.7830
Position: –
Target:Â –
Stop:-
As aussie has rallied after finding renewed buying interest at 0.7878 yesterday and broke above psychological resistance at 0.8000, adding credence to our bullish view that recent upmove is still in progress and upside bias remains for the medium term impulsive wave to extend headway to 0.8100, however, near term overbought condition should limit upside to 0.8140-50, bring retreat later. We are keeping our latest bullish count that recent impulsive waves is unfolding as (1 2, (i)(ii), i ii) and may extend headway to aforesaid upside targets.Â
In view of this, would not chase this rise here and we are looking to buy aussie on subsequent pullback as 0.7878 support should limit downside, bring another upmove later. Below support at 0.7875 would defer and risk correction to 0.7810-20, however, still reckon downside would be limited to 0.7786 and price should stay well above wave i top at 0.7712.
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.
