AUD/USD – 0.7780
Original strategy:
Sell at 0.7850, Target: 0.7700, Stop: 0.7910
Position: –
Target: –
Stop:-
New strategy :
Sell at 0.7860, Target: 0.7700, Stop: 0.7920
Position: –
Target: –
Stop:-
Aussie has recovered again after holding above last week’s low at 0.7733, suggesting further sideways trading above this level would take place and corrective bounce to 0.7830-35 cannot be ruled out, however, reckon resistance at 0.7875 would cap upside and bring another decline later, below said support at 0.7733 would add credence to our view that the fall from 0.8125 top is still in progress for weakness to 0.7700-10 but loss of near term downward momentum should prevent sharp fall below 0.7660-65 and reckon 0.7600-10 would hold from here, bring rebound later.
In view of this, we are looking to sell aussie again on recovery as said resistance at 0.7875 should limit upside and bring another decline. Above previous support at 0.7908 (now resistance) would defer and risk a stronger rebound to 0.7950 but resistance at 0.7986 should remain intact and 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.
