Elliott Wave Daily

Trade Idea: AUD/USD - Hold short entered at 0.7875

Typography

AUD/USD – 0.7818


Original strategy:

Sold at 0.7875, Target: 0.7700, Stop: 0.7890

Position: - Short at 0.7875
Target:  - 0.7700
Stop:- 0.7935


New strategy :

Hold short entered at 0.7875, Target: 0.7700, Stop: 0.7860

Position: - Short at 0.7875
Target:  - 0.7700
Stop:- 0.7860


Although aussie recovered after finding support at 0.7796 and minor consolidation above this level would be seen, reckon upside would be limited to 0.7840 and bring another decline, below said support would extend the fall from 0.7897 to support at 0.7771, however, break there is needed to signal the rebound from 0.7733 has ended at 0.7897, bring a retest of said support at 0.7733, below there would confirm 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.