AUD/USD – 0.7437
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
Original strategy :
Buy at 0.7370, Target: 0.7520, Stop: 0.7320
Position: –
Target:Â –
Stop: –
New strategy :
Buy at 0.7370, Target: 0.7520, Stop: 0.7320
Position: –
Target:Â –
Stop:-
Although aussie has retreated after rising to 0.7467, if our view that low has been formed at 0.7329 is correct, downside should be limited to 0.7400 and renewed buying interest should emerge around 0.7370 and bring another rise later, above said resistance at 0.7467 would extend the rebound from 0.7329 to 0.7500-10 but break there is needed to add credence to this view, bring subsequent rise towards resistance at 0.7556 which is likely to hold from here due to near term overbought condition.
In view of this, we are looking to buy aussie on dips as 0.7360-70 should limit downside. A break of said support at 0.7329 would abort and signal recent decline is still in progress for weakness to 0.7295-00 (76.4% retracement of 0.7158-0.7750), however, loss of downward momentum should prevent sharp fall below 0.7300 and reckon 0.7245-50 would remain intact, bring another rebound later.Â
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.
