AUD/USD – 0.7841
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
Aussie’s near term sideways trading is likely to continue and as long as indicated resistance at 0.7897 (last week’s high) holds, prospect of another retreat remains, below support at 0.7818 would retain bearishness and bring weakness to 0.7800, break there would add credence to our view that top has been formed at 0.7897, bring test of 0.7770-75, then retest of said support at 0.7733, 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.
