AUD/USD – 0.7833
Original strategy:
Sold at 0.7875, Target: 0.7700, Stop: 0.7900
Position: – Short at 0.7875
Target: – 0.7700
Stop:- 0.7935
New strategy :
Hold short entered at 0.7875, Target: 0.7700, Stop: 0.7890
Position: – Short at 0.7875
Target: – 0.7700
Stop:- 0.7890
Although aussie found support at 0.7818 and recovered, if our view that top formed at 0.7897 late last week is correct, upside would be limited to 0.7860-65 and bring another decline to 0.7800, break there would add credence to this view and bring test of 0.7770-75, break there would provide confirmation, then retest of said support at 0.7733 would follow, below there would signal recent fall from 0.8125 top has resumed for weakness to 0.7700-10 and later towards 0.7660-65.
In view of this, we are holding on to our short position entered at 0.7875. Only 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.
