Fri, Jun 09, 2023 @ 15:17 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Hold short entered at 0.7605

Trade Idea: AUD/USD – Hold short entered at 0.7605

AUD/USD – 0.7565

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

Original strategy :

Sold at 0.7605, Target: 0.7450, Stop: 0.7665

Position: – Short at 0.7605
Target:  – 0.7450
Stop: – 0.7665

New strategy :

Hold short entered at 0.7605, Target: 0.7450, Stop: 0.7635

Position: – Short at 0.7605
Target:  – 0.7450
Stop:- 0.7635

As aussie has retreated after meeting renewed selling interest at 0.7633 yesterday, suggesting the rebound from 0.7543 has ended and bearishness remains for the decline from 0.7741 top to resume, bring retracement of recent upmove, below said support would extend weakness to 0.7512 support but near term oversold condition should prevent sharp fall below previous support at 0.7493 and price should stay above support at 0.7449, bring rebound later.

In view of this, we are holding on to our short position entered at 0.7605. Above said resistance at 0.7633 would risk a stronger rebound to 0.7665 (61.8% Fibonacci retracement of 0.7741-0.7543) but only break there would abort and suggest the retreat from 0.7741 has ended, bring a stronger rebound to 0.7700 but price should falter well below said resistance at 0.7741, bring another decline.

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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