Sat, Jan 28, 2023 @ 20:28 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Hold short entered at 0.7720

Trade Idea: AUD/USD – Hold short entered at 0.7720

AUD/USD – 0.7672

Original strategy:

Sold at 0.7720, Target: 0.7550, Stop: 0.7780

Position: – Short at 0.7720
Target:  – 0.7550
Stop:- 0.7780

New strategy :

Hold short entered at 0.7720, Target: 0.7550, Stop: 0.7720

Position: – Short at 0.7720
Target:  – 0.7550
Stop:- 0.7720

Although aussie rebounded after finding support at 0.7638, as 0.7701 has capped upside and price has retreated, retaining our bearishness for another test of said support, break there would add credence to our view that the rebound from 0.7625 has ended at 0.7730, bring retest of this level, below there would extend recent decline from 0.8125 top to 0.7600, having said that, loss of downward momentum should prevent sharp fall below 0.7550 and reckon 0.7500 would hold from here, bring rebound later. 

In view of this, we are holding on to our short position entered at 0.7720. Above said resistance at 0.7730 would defer and risk a stronger rebound but only break of previous support at 0.7770 would abort and suggest a temporary low has possibly been formed, bring rebound to 0.7800 and then towards 0.7825-35 later.

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.

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