AUD/USD – 0.7989
New strategy :
Buy at 0.7925, Target: 0.8125, Stop: 0.7865
Position: –
Target:Â –
Stop:-
Although aussie rose to as high as 0.8028 yesterday, lack of follow through buying and the subsequent retreat suggest consolidation below this level would be seen and pullback to 0.7950 cannot be ruled out, however, still reckon 0.7920-25 would limit downside and bring another rise, break of said resistance would extend gain to 0.8040-54, then retest of recent high of 0.8066 but break there is needed to confirm recent upmove has resumed for headway towards 0.8100-10 later.
In view of this, we are looking to buy aussie on pullback as 0.7920-25 should limit downside. On;y below support at 0.7871 would abort and suggest the rebound from 0.7808 has ended instead, bring further fall to 0.7850 but price should stay above said support at 0.7808.
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.
