Mon, May 16, 2022 @ 19:33 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Stand aside

Trade Idea: AUD/USD – Stand aside

AUD/USD – 0.7603

Recent wave: Wave 5 ended at 1.1081 and major correction has commenced for fall to 0.7000 and then towards 0.6500-10

Trend: Near term up

New strategy :

Stand aside

Position: –
Target:  –
Stop:-

Despite last week’s anticipated selloff to 0.7543, as aussie found good support there and has rebounded again, suggesting consolidation above this level would be seen and recovery to 0.7630 cannot be ruled out, however, reckon upside would be limited to o0.7660-65 and bring another decline later. A break of said support at 0.7543 would signal the fall from 0.7741 top is still in progress, bring retrace,eat of recent upmove to 0.7512 but oversold condition should prevent sharp fall below previous support at 0.7493 and price should stay above support at 0.7449, bring rebound later.

As near term outlook is mixed, would be prudent to stand aside for now. On the upside, expect recovery to be limited to 0.7630 and price should falter below previous support at 0.7663, bring another decline later. Only break of 0.7700 would signal the retreat from 0.7741 (last month’s high) has ended and bring retest of this level first.

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.

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