AUD/USD – 0.7590
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 up
Original strategy :
Bought at 0.7595, Target: 0.7745, Stop: 0.7555
Position: – Long at 0.7595
Target:Â – 0.7745
Stop: – 0.7555
New strategy :
Hold long entered at 0.7595, Target: 0.7745, Stop: 0.7555
Position: – Long at 0.7595
Target:Â – 0.7745
Stop:- 0.7555
As aussie has retreated after faltering below resistance at 0.7625, suggesting further consolidation would be seen, however, as long as minor support at 0.7558 holds, mild upside bias remains for another rebound, above said resistance at 0.7625 would bring a retest of indicated resistance at 0.7636, break there would confirm recent upmove has resumed and extend the rise from 0.7329 towards previous resistance at 0.7680 but loss of momentum should limit upside to chart resistance at 0.7750 and price should falter below 0.7785-90.
In view of this, we are holding on to our long position entered at 0.7595. Only below said support at 0.7535 would defer and suggest top is possibly formed, bring correction to 0.7515-20, break there would provide confirmation, then correction to 0.7490-95 and possibly towards support at 0.7457 would be seen 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.
