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

Trade Idea: AUD/USD – Stand aside

AUD/USD – 0.7594

Original strategy:

Exit short entered at 0.7620

Position: – Short at 0.7620
Target:  –

New strategy :

Stand aside

Position: –
Target:  –

As aussie has retreated after meeting resistance at 0.7645, suggesting consolidation with mild downside bias would be seen and pullback to 0.7550-55 cannot be ruled out, however, break there is needed to signal the rebound from 0.7532 (last week’s low) has ended, bring retest of this level later, break there would extend recent decline from 0.8125 top for further weakness to 0.7500, then 0.7470.

On the upside, expect recovery to be limited to 0.7620-25 and said resistance at 0.7645 should remain intact, bring retreat later. A break of said resistance at 0.7645 would extend the corrective bounce from 0.7532 (last week’s low) for retracement of recent decline to 0.7670, then towards resistance at 0.7701 which is likely to hold from here. As near term outlook is mixed, would be prudent to stand aside for now.

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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