Elliott Wave Daily

Trade Idea: AUD/USD - Stand aside

Typography

AUD/USD – 0.7522

Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10

Trend: Near term down


New strategy :

Stand aside

Position: -
Target:  -
Stop:-


Although aussie fell quite sharply this week and dropped to as low as 0.7491, the subsequent recovery from there suggests consolidation would be seen, above 0.7550 would bring another bounce to 0.7570-75 but price should falter well  below resistance at 0.7611, bring another decline later.

Below said support at 0.7491 would bring test of indicated previous support at 0.7473, however, break there is needed to retain bearishness and extend the fall from 0.7750 top to 0.7450-55 (50% Fibonacci retracement of 0.7158-0.7750) but oversold condition should limit downside to 0.7380-85 (61.8% Fibonacci retracement), risk from there is seen for a rebound later. As near term outlook is mixed, would be prudent to stand aside in the meantime.

On the 4-hour chart, the move from 0.8066 is the wave 5 with i: 0.8860, ii: 0.8315, wave iii is an extended move ended at 1.0183, iv: 0.9706 and wave v has ended at 1.1081 (also the top of entire wave 5). The subsequent selloff is the major correction which is unfolding as ABC-X-ABC and 2nd A leg has ended at 0.8848, followed by a-b-c wave B which ended at 0.9758, hence, 2nd C wave is now in progress and indicated downside target at 0.7000 and 0.6950 had been met, so further fall to 0.6710-20 cannot be ruled out.