AUD/USD – 0.7827
Original strategy:
Sell at 0.7940, Target: 0.7740, Stop: 0.8000
Position: –
Target:Â –
Stop:-
New strategy :
Sell at 0.7940, Target: 0.7740, Stop: 0.8000
Position: –
Target:Â –
Stop:-
As aussie has dropped again today after brief recovery and broke below previous support at 0.7808, adding credence to our bearish view that the decline from 0.8125 top is still in progress and bearishness remains for this fall to bring retracement of early upmove towards 0.7740-50, however, near term oversold condition should limit downside and reckon 0.7700 would hold, bring rebound later.Â
In view of this, we are looking to sell aussie again on recovery 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.
