AUD/USD – 0.7551
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 :
Although aussie has retreated after meeting resistance at 0.7592 and initial downside bias is seen for weakness to 0.7520-25, break of indicated support at 0.7491 is needed to signal recent decline from 0.7741 has resumed and extend weakness to previous support at 0.7543 which is likely to hold on first testing.
On the upside, expect recovery to be limited to 0.7570-75 and said resistance at 0.7592 should hold, bring further consolidation later. Only break of said resistance at 0.7592 would suggest a temporary low has been formed there and consolidation with mild upside bias is seen for further gain to resistance at 0.7633, break there is needed to add credence to this view, bring a stronger rebound to 0.7665-70, above there would suggest the fall from 0.7741 top has ended, then gain to 0.7700 would follow.
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.