AUD/USD – 0.7641
Original strategy:
Sold at 0.7875, met target at 0.7700
Position: – Short at 0.7875
Target: – 0.7700
Stop:-
New strategy :
Sell at 0.7720, Target: 0.7550, Stop: 0.7780
Position: –
Target: –
Stop:-
As aussie has remained under pressure after recent anticipated selloff, adding credence to our view that recent decline from 0.8125 top is still in progress and further weakness to 0.7600 is likely, however, near term loss of downward momentum should prevent sharp fall below 0.7550 and reckon 0.7500 would hold from here, bring rebound later.
In view of this, we are looking to reinstate short on recovery as 0.7715-20 should limit upside and bring another decline. Above previous support at 0.7770 would defer and suggest a temporary low is possibly formed, bring rebound to 0.7800 and then towards 0.7825-35 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.
