AUD/USD – 0.7999
Original strategy :
Bought at 0.7895, stopped profit at 0.7900
Position: – Long at 0.7895
Target: –
Stop: – 0.7900
New strategy :
Stand aside
Position: –
Target: –
Stop:-
Aussie’s retreat from 0.7996 turned out to be much deeper than expected, dampening our bullishness and further consolidation would take place, near term downside risk remains for weakness to 0.7865-57, however, break there is needed to suggest the rebound from 0.7808 has ended instead, bring another leg of corrective decline towards this level later. Below 0.7808 would signal the wave iv correction from 0.8066 is still in progress for weakness to 0.7786 support, however, oversold condition should prevent sharp fall below 0.7750 and price should stay above i top at 0.7712, bring rebound 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 towards 0.8150.
In view of this, would be prudent to stand aside in the meantime. Above 0.7925-30 would bring another corrective bounce to 0.7950-60, however, said resistance at 0.7996 should hold, bring further choppy trading. Only above 0.7996-0.8000 would revive bullishness and signal the pullback from 0.8066 has ended, bring subsequent retest of this level.
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.
