Trade Idea: AUD/USD – Sell at 0.7940

AUD/USD – 0.7854

Original strategy:

Sell at 0.8040, Target: 0.7840, Stop: 0.8100

Position: –
Target:  –
Stop:-

New strategy :

Sell at 0.7940, Target: 0.7740, Stop: 0.8000

Position: –
Target:  –
Stop:-

As aussie has fallen again after brief recovery and broke below previous support at 0.7861, suggesting the decline from 0.8125 top is still in progress and bearishness remains for this fall to bring retracement of recent upmove towards previous support at 0.7808, however, near term oversold condition should limit downside to 0.7740-50 and reckon 0.7700 would hold, bring rebound later. 

In view of this, we are looking to sell aussie again on recovery but at a lower level as 0.7940-50 should limit upside and bring another decline. Above resistance at 0.7986 would defer and suggest a temporary low is formed instead, bring a stronger rebound to 0.8000 but price should falter below 0.8040-50, bring another decline 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.