Elliott Wave Daily

Trade Idea: AUD/USD - Exit long entered at 0.8050

Typography

AUD/USD – 0.8050


Original strategy:

Bought at 0.8050, Target: 0.8200, Stop: 0.7990

Position: - Long at 0.8050
Target:  - 0.8200
Stop:- 0.7990


New strategy :

Exit long entered at 0.8050,

Position: - Long at 0.8050
Target:  -
Stop:-


As aussie has retreated quite sharply after rising to 0.8125 on Friday, suggesting a minor top has possibly been formed there and consolidation with mild downside bias is seen and weakness to 0.8000 cannot be ruled out, however, only break of support at 0.7963 would add credence to this view, bring retracement of recent rise to 0.7920-25 but support at 0.7867-71 should remain intact.

In view of this, would be prudent to exit long entered at 0.8050 and stand aside for now. Above 0.8100 would bring retest of said last week’s high at 0.8125, break there would extend recent upmove in wave v of (iii) to 0.8150, then towards 0.8200, however, loss of upward momentum should prevent sharp move beyond 0.8225-30 and price should falter below 0.8250-60, risk from there is seen for a retreat later.

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.