Elliott Wave Daily |
Written by Action Forex |
Jan 12 17 10:35 GMT
AUD/USD – 0.7499
Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10
Original strategy :
Buy at 0.7300, Target: 0.7480, Stop: 0.7240
New strategy :
Buy at 0.7400, Target: 0.7570, Stop: 0.7340
As aussie’s has rallied again yesterday, suggesting the rise from 0.7158 low is still in progress and a sustained breach above resistance at 0.7525 would signal the fall from 0.7778 has ended at 0.7158 and further gain to 0.7575-80 would be seen, however, near term overbought condition should limit upside to 0.7620-30 and reckon 0.7670-80 would hold from here.
In view of this, we are still looking to buy aussie on pullback but at a higher level as 0.7400 should limit downside. Below support at 0.7352 would defer and risk weakness to 0.7320-25 but only break of support at 0.7288 would signal the rise from 0.7158 has ended instead, bring further subsequent fall to 0.7250.
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
Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530
Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF
Elliott Wave Daily Trade Ideas Update Schedule (GMT):
AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500 GMT