AUD/USD – 0.8473

Recent wave:  Wave 5 ended at 0.9389 as failed 5th and major correction is underway

Trend:  Down

Original strategy : 

Buy at 0.8350, Target: 0.8550, Stop: 0.8270

New strategy  : 

Stand aside

Despite yesterday’s brief retreat to 0.8365, as the Australian dollar has rebounded, suggesting a test of resistance at 0.8552 is likely, however, break there is needed to bring stronger retracement in 2nd wave b for gain to 0.8600.

Below 0.8365 would prolong sideways trading and then weakness to 0.8300 cannot be ruled out, however, support at 0.8276 should limit downside and 0.8200 should hold and bring another rebound later.

In view of the upcoming release of key U.S. job data, we are stand aside in the meantime.

Our latest preferred count is that the major rise from 0.6007 a wave (B) and the wave C of this 3-legged (B) commenced from 0.6248 which ended at 0.9389 (with a failed wave 5). Therefore, major wave (C) decline has commenced from there and the A leg is unfolding which is sub-divided into an abc-x-abc with first set of abc ended at 0.8711, followed by x wave at 0.9078 and 2nd a leg has possibly ended at 0.8066.