AUD/USD – 0.7703
Original strategy:
Sold at 0.7875, met target at 0.7700
Position: – Short at 0.7875
Target: – 0.7700
Stop:-
New strategy :
Stand aside
Position: –
Target: –
Stop:-
Yesterday’s selloff together with the breach of previous support at 0.7733 confirms recent decline from 0.8125 top has resumed and our short position entered at 0.7875 met downside target at 0.7700 (with 175 points profit), although this anticipated decline adds credence to our bearish view and further weakness to 0.7650 is likely, near term loss of downward momentum should prevent sharp fall below 0.7600 and reckon 0.7550 would hold from here, bring rebound later.
As we have taken profit on our short position entered at 0.7875, would not chase this fall here and would be prudent to stand aside for now. Above 0.7750 would bring recovery to 0.7770 but only break of latter level would suggest a temporary low is possibly formed instead, risk further gain to 0.7800 and then towards 0.7835, break of latter level would confirm.
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.
