Elliott Wave Daily |
Written by Action Forex |
Jan 10 17 09:10 GMT
AUD/USD – 0.7358
Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10
New strategy :
Buy at 0.7280, Target: 0.7480, Stop: 0.7220
As aussie has risen again after brief pullback, suggesting the rebound from 0.7158 low is still in progress, hence consolidation with mild upside bias is seen for this move to bring retracement of recent decline to 0.7385 (61.8% Fibonacci retracement of 0.7525-0.7158) and possibly 0.7430-35, however, reckon upside would be limited to 0.7480-85 and price should falter below resistance at 0.7525, bring another decline later.
In view of this, we are looking to buy aussie on pullback as 0.7280 should limit downside. Below 0.7247-50 would defer and suggest the rebound from 0.7158 has ended and revive our bearishness for weakness to 0.7200-05 first. Looking ahead, only a break of support at 0.7158 would extend recent decline in wave (C) to 0.7100-10, then 0.7070 but reckon psychological support at 0.7000 would hold.
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 ended at 1.0183, iv: 0.9706 and wave v has ended at 1.1081 (also the top of entire wave 5). The subsequent selloff is the major correction which is unfolding as ABC-X-ABC and 2nd A leg has ended at 0.8848, followed by a-b-c wave B which ended at 0.9758, hence, 2nd C wave is now in progress and indicated downside target at 0.7000 and 0.6950 had been met, so further fall to 0.6710-20 cannot be ruled out.
About the Author
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