AUD/USD – 0.7597
Original strategy:
Exit short entered at 0.7620
Position: – Short at 0.7620
Target: –
Stop:-
New strategy :
Sell at 0.7620, Target: 0.7470, Stop: 0.7660
Position: –
Target: –
Stop:-
Although aussie rebounded after finding support at 0.7551 and further consolidation above recent low at 0.7532 would be seen, reckon last week’s high at 0.7645 would limit upside and bring another decline later, below 0.7551 support would signal the rebound from 0.7532 has ended, bring retest of this level, break there would confirm recent decline from 0.8125 top has resumed for further weakness to 0.7500, then 0.7470.
In view of this, we are looking to sell aussie on recovery as 0.7620-25 should limit upside. A firm break above said resistance at 0.7645 would suggest another leg of corrective rise from 0.7532 is underway and bring a stronger retracement of recent decline towards resistance at 0.7701 which is likely to hold from here.
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.
