AUD/USD – 0.7676
Original strategy:
Sell at 0.7720, Target: 0.7550, Stop: 0.7780
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.7720, Target: 0.7550, Stop: 0.7780
Position: –
Target: –
Stop:-
As aussie found support at 0.7625 late last week and has rebounded, suggesting consolidation above this level would be seen and corrective bounce to 0.7700 cannot be ruled out, however, reckon 0.7720-25 would limit upside and bring another decline later, below said support would add credence to our view that recent decline from 0.8125 top is still in progress and may extend further weakness to 0.7600, having said that, 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 0.7720-25 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.
