AUD/USD – 0.7844
Original strategy:
Sell at 0.7875, Target: 0.7700, Stop: 0.7935
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.7875, Target: 0.7700, Stop: 0.7935
Position: –
Target: –
Stop:-
Although aussie has continued edging higher and gain to 0.7875 resistance cannot be ruled out, as this move from 0.7733 temporary low is viewed as retracement of recent decline, reckon upside would be limited and bring retreat later, below 0.7800 would bring test of 0.7770-75, break there would signal top is formed, then retest of said support at 0.7733 would follow, below there would add credence to our view that the fall from 0.8125 top is still in progress for weakness to 0.7700-10 but loss of near term downward momentum should prevent sharp fall below 0.7660-65 and reckon 0.7600-10 would hold from here.
In view of this, we are looking to sell aussie again on further 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.
