AUD/USD – 0.7545
Original strategy:
Sold at 0.7720, met target at 0.7550
Position: – Short at 0.7720
Target: – 0.7550
Stop:-
New strategy :
Stand aside
Position: –
Target: –
Stop:-
As aussie has dropped again today in line with our bearish expectation, adding credence to our bearish view that recent decline from 0.8125 top is still in progress, our downside target at 0.7550 was just met (with 170 points profit), although near term downside bias remains for this move to extend weakness to 0.7500, loss of downward momentum should prevent sharp fall below 0.7440-50, risk from there is seen for a rebound later.
As we have taken profit on our short position entered at 0.7720, would not chase this fall here and would be prudent to stand aside for now. Above 0.7605-10 would bring rebound to 0.7650, however, reckon upside would be limited to 0.7701 resistance and price should falter well below this month’s high at 0.7730, bring another decline.
On the 4-hour chart, recent upmove from 0.7329 is unfolding as an impulsive rise with wave 3 as well as smaller degree wave (iii) extending, only minor wave v of (iii) has ended at 0.8125, hence bullishness remains for this move to extend headway to 0.8200, then towards 0.8300, however, reckon upside would be limited to 0.8400 and the final wave 5 should falter below 0.8500, bring correction later.
