AUD/USD – 0.7838
Original strategy:
Sell at 0.7940, Target: 0.7740, Stop: 0.8000
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.7940, Target: 0.7740, Stop: 0.8000
Position: –
Target: –
Stop:-
As aussie recovered after falling to 0.7799 yesterday. suggesting minor consolidation above this level would be seen and corrective bounce to 0.7880 and then 0.7900-10 cannot be ruled out, however, reckon 0.7940-50 would limit upside and bearishness remains for the decline from 0.8125 top to bring retracement of early upmove towards 0.7740-50, however, oversold condition should limit downside and reckon 0.7700 would hold, bring rebound later.
In view of this, we are looking to sell aussie again on recovery as 0.7940-50 should limit upside and bring another decline. Above resistance at 0.7986 would defer and suggest a temporary low is formed instead, bring a stronger rebound to 0.8000 but price should falter below 0.8040-50, bring another decline later.
On the 4-hour chart, recent upmove from 0.7329 is unfolding as an impulsive rise with wave 3 as well as smaller degree wave (iii) extending, only minor wave v of (iii) has ended at 0.8125, hence bullishness remains for this move to extend headway to 0.8200, then towards 0.8300, however, reckon upside would be limited to 0.8400 and the final wave 5 should falter below 0.8500, bring correction later.
