Sun, Feb 05, 2023 @ 16:58 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 – 0.7663

Original strategy:

Sold at 0.7720, Target: 0.7550, Stop: 0.7720

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

New strategy :

Hold short entered at 0.7720, Target: 0.7550, Stop: 0.7705

Position: – Short at 0.7720
Target:  – 0.7550
Stop:- 0.7705

As aussie has retreated again after faltering below resistance at 0.7701, retaining our bearishness for recent decline to resume after consolidation, below indicated support at 0.7625 would extend recent decline from 0.8125 top to 0.7600, then 0.7550, having said that, loss of downward momentum should prevent sharp fall below there 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 0.7701 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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