AUD/USD – 0.7861
Original strategy:
Sold at 0.7875, Target: 0.7700, Stop: 0.7935
Position: – Short at 0.7875
Target: – 0.7700
Stop:- 0.7935
New strategy :
Hold short entered at 0.7875, Target: 0.7700, Stop: 0.7900
Position: – Short at 0.7875
Target: – 0.7700
Stop:- 0.7900
Although aussie rose to as high as 0.7897 late last week, the subsequent retreat from there has retained our bearishness and consolidation with mild downside bias remains for weakness to 0.7800, break there would suggest top is possibly formed, bring test of 0.7770-75, break there would add credence to this view, then retest of said support at 0.7733 would follow, below there would confirm recent fall from 0.8125 top has resumed for weakness to 0.7700-10 and later towards 0.7660-65.
In view of this, we are holding on to our short position entered at 0.7875. Only 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.
