AUD/USD – 0.7525
Original strategy:
Sold at 0.7620, Target: 0.7470, Stop: 0.7660
Position: – Short at 0.7620
Target: – 0.7470
Stop:- 0.7660
New strategy :
Hold short entered at 0.7620, Target: 0.7470, Stop: 0.7610
Position: – Short at 0.7620
Target: – 0.7470
Stop:- 0.7610
Although aussie rose briefly to 0.7654, as renewed selling interest emerged there and the pair has dropped again below previous support at 0.7532-51, adding credence to our bearish view that recent decline from 0.8125 top has resumed and downside bias remains for this move to extend further weakness to 0.7500, then 0.7470, however, near term oversold condition would limit downside to 0.7440 and price should stay above 0.7390-00.
In view of this, we are holding on to our short position entered at 0.7620. Above 0.7600 would risk test of 0.7640 and then 0.7654 but only break of latter level would abort and signal low is formed instead, bring a stronger rebound 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.
