AUD/USD – 0.7759
Original strategy:
Sell at 0.7940, Target: 0.7740, Stop: 0.8000
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.7850, Target: 0.7700, Stop: 0.7910
Position: –
Target: –
Stop:-
Aussie only recovered to 0.7875 before dropping again, adding credence to our view that the fall from 0.8125 top is still in progress, hence mild downside bias remains for this decline to extend weakness to 0.7700-10, however, loss of near term downward momentum should prevent sharp fall below 0.7660-65 and reckon 0.7600-10 would hold from here, bring rebound later.
In view of this, we are looking to sell aussie again on recovery as said resistance at 0.7875 should limit upside and bring another decline. Above previous support at 0.7908 (now resistance) would defer and risk a stronger rebound to 0.7950 but resistance at 0.7986 should remain intact and 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.
