AUD/USD – 0.7924
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Although aussie found support at 0.7871 yesterday and staged a rebound and gain to 0.7960-70 cannot be ruled out, the pair needs to penetrate indicated resistance at 0.7996 to revive bullishness and signal the pullback from 0.8066 has ended, bring subsequent retest of this level which is likely to hold from here. If said resistance at 0.7996 continues to hold, then further choppy trading would take place.
On the downside, below support at 0.7867-71 would signal 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.
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.
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