AUD/USD – 0.7962
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Although aussie found support at 0.7938 and rebounded, break of 0.8000 level is needed to would revive bullishness and signal the pullback from 0.8066 has ended earlier at 0.7808, hence upside bias would be for further gain to 0.8040-43, then retest of this level which is likely to hold on first testing. If said resistance continues to hold, then further choppy trading would take place.
On the downside, below 0.7920-25 would bring weakness to 0.7890-00, however, as outlook remains consolidative, reckon support at 0.7871 would remain intact, bring another rebound later. A drop below 0.7871 would suggest the erratic rise from 0.7808 has ended, brig further fall to 0.7850 but price should stay above said support at 0.7808. As near term outlook is mixed, would be prudent to stand aside for now.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.
