Trade Idea: AUD/USD - Buy at 0.7960

AUD/USD - 0.8000

Recent wave: wave 3 rally from 0.6248 (2 Feb 2009) is under way
Trend : Up

Our trading strategy: Buy at 0.7960, Target:0.8060, Stop-loss:0.7890

Aussie continued to move higher due to the dollar's weakness elsewhere and penetrated 0.7893 (high of 27 May 2009), suggesting the wave 3 rally from 0.6248 (2 Feb 2009) remains in progress and recent series of higher highs and higher lows (uptrend) would bring further headways towards 0.8100 level and eventually to 0.8292 (1.618 times Fibonacci projection of 0.6007-0.7270 measured from 0.6248).

Therefore, buying aussie on any pullback is recommended and as the aussie's rally has gathered momentum on Friday and current impulsive structure suggest we should chase this upmove for further subsequent gain, however, profit should be taken on next rise as high reading on hourly oscillator should prevent strong upmove above 0.8100. In the event, aussie breaks below 0.7893 (previous resistance, now support), then a minor correction to 0.7800/10 level would be allowed, however, only a breach of 0.7703/48 support area would violate the abovementioned series of higher highs and higher lows.