AUD/USD – 0.7965
Original strategy:
Sell at 0.8040, Target: 0.7840, Stop: 0.8100
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.8040, Target: 0.7840, Stop: 0.8100
Position: –
Target: –
Stop:-
As aussie found support at 0.7908 late last week and has rebounded since, retaining our view that consolidation above this level would be seen and corrective bounce to 0.8000 cannot be ruled out, however, reckon upside would be limited to 0.8040-50 and bring another decline later, below said support at 0.7908 would extend weakness to support at 0.8967-71, having said that, break there is needed to confirm temporary top has been formed at 0.8125 earlier this month, bring retracement of recent rise to 0.7800 first.
In view of this, we are looking to sell aussie again on recovery as 0.8040-50 should limit upside. Above said resistance at 0.8103 would abort and risk retest of 0.8125 but break of latter level is needed to confirm upmove has resumed and extend gain to 0.8150-60, then towards 0.8200 later.
On the 4-hour chart, recent upmove from 0.7329 is unfolding as an impulsive rise with wave 3 as well as smaller degree wave (iii) extending, only minor wave v of (iii) has ended at 0.8125, hence bullishness remains for this move to extend headway to 0.8200, then towards 0.8300, however, reckon upside would be limited to 0.8400 and the final wave 5 should falter below 0.8500, bring correction later.
