HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Exit short entered at 0.7620

Trade Idea: AUD/USD – Exit short entered at 0.7620

AUD/USD – 0.7610

Original strategy:

Sold at 0.7620, Target: 0.7470, Stop: 0.7680

Position: – Short at 0.7620
Target:  – 0.7470
Stop:- 0.7680

New strategy :

Exit short entered at 0.7620

Position: – Short at 0.7620
Target:  –

Aussie found renewed buying interest at 0.7555 yesterday and has staged another strong rebound, suggesting further consolidation above this week’s low at 0.7532 would be seen and corrective bounce to 0.7645-50 cannot be ruled out, however, break there is needed to signal a temporary low has been formed, bring retracement of recent decline to 0.7670, then towards resistance at 0.7701 which is likely to hold from here.

In view of this, would be prudent to exit short entered at 0.7620 and stand aside in the meantime. Below 0.7580 would bring test of said support at 0.7555 but only break there would revive bearishness and signal the rebound from 0.7532 has ended, then retest of this level would follow. A drop below this support would signal recent decline from 0.8125 top is still in progress for further weakness to 0.7500, then 0.7470. 

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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