AUD/USD – 1.0800

Recent wave: Wave 4 ended at 0.8066 and wave 5 has possibly ended at 1.1081

Trend: Up

Original strategy :

Buy at 1.0530, Target: 1.0750, Stop: 1.0465

Position: -
Target:  -
Stop:-

New strategy :

Buy at 1.0635, Target: 1.0835, Stop: 1.0565

Position: -
Target:  -
Stop:-

As aussie has risen again after brief retreat to 1.0682 yesterday, suggesting recent rise from 0.9388 is still in progress as wave c and further gain to 1.0850 and possibly 1.0900 would be seen, however, overbought condition should limit upside to 1.0950-60 and c leg should falter below previous resistance at 1.1081, bring retreat later.

On the 4-hour chart, the move from 0.8066 is the wave 5 with i: 0.8860, ii: 0.8315, wave iii is an extended move with 1: 0.9223, 2: 0.8770, 3: 1.0183, iv: 0.9536 and wave 5 of 3 has possibly ended at 1.1081, however, the rebound from 0.9388 suggests the a-b-c wave A has ended there and wave B correction to retrace the A leg decline is still unfolding with a leg ended at 1.0753, followed by b leg at 0.9664, hence c leg is still in progress for gain towards 1.0900 but resistance at 1.1081 should remain intact.

In view of this, we are still looking to buy aussie on pullback. Below said support at 1.0682 would bring retracement to 1.0630/35 but renewed buying interest should emerge there, bring another rally later. Only below support at 1.0569 would abort and signal a temporary top is formed and risk retracement to 1.0520-30 but downside should be limited to 1.0445-50 and 1.0425-30 should hold, bring another rally later.

On the bigger picture, the major rise from 0.6007 is wave (B) and only wave iii of wave C has ended at 0.9407, followed by wave 4 at 0.8066 and wave 5 has either ended at 1.1081 or may extend to 1.1195/00 but reckon 1.1300 would hold.