HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Stand aside

Trade Idea: AUD/USD – Stand aside

AUD/USD – 0.7584

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:  –

As aussie has rebounded again after finding support at 0.7540 yesterday, retaining our view that further consolidation above indicated support at 0.7491 would be seen and recovery to 0.7610-15 cannot be ruled out, however, a sustained breach above resistance at 0.7633 is needed to confirm a temporary low has been formed at 0.7491, bring 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 downside, below support at 0.7530-40 would suggest the rebound from 0.7491 has ended, bring retest of this level, break there would 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 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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