AUD/USD – 0.7382
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 :
Exit long entered at 0.7405
Position: – Long at 0.7405
Target:Â –
Stop: –
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
As aussie has remained under pressure after meeting renewed selling interest at 0.7476, suggesting downside risk remains for the fall from 0.7518 to extend weakness to 0.7350, break there would add credence to our view that the rebound from 0.7329 has ended at 0.7518 last month, bring further fall towards this level. Only a drop below there would confirm recent decline has resumed and extend weakness to 0.7295-00 (76.4% retracement of 0.7158-0.7750).
In view of this, would be prudent to stand aside for now. above 0.7420-25 would bring another bounce to 0.7476 resistance but break there is needed to revive bullishness and signal the retreat from m0.7518 has ended, bring another rise towards this level first.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.
