AUD/USD – 0.7717
Original strategy:
Sold at 0.7720, Target: 0.7550, Stop: 0.7780
Position: – Short at 0.7720
Target: – 0.7550
Stop:- 0.7780
New strategy :
Hold short entered at 0.7720, Target: 0.7550, Stop: 0.7780
Position: – Short at 0.7720
Target: – 0.7550
Stop:- 0.7780
As aussie has rebounded again today, marginal gain from here cannot be ruled out, however, as this move from 0.7625 is viewed a retracement of recent decline (wave iv type), reckon upside would be limited to previous support at 0.7733 and bring another decline later, below support at 0.7660-65 would bring retest of 0.7625, break there would extend recent decline from 0.8125 top to 0.7600, having said that, loss of downward momentum should prevent sharp fall below 0.7550 and reckon 0.7500 would hold from here, bring rebound later.
In view of this, we are holding on to our short position entered at 0.7720. Above previous support at 0.7770 would defer and suggest a temporary low is possibly formed, bring rebound to 0.7800 and then towards 0.7825-35 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.
