Fri, Jun 02, 2023 @ 16:11 GMT
HomeTrade IdeasElliott Wave DailyTrade Idea: AUD/USD - Hold long entered at 0.7645

Trade Idea: AUD/USD – Hold long entered at 0.7645

AUD/USD – 0.7608

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

Original strategy :

Bought at 0.7645, Target: 0.7800, Stop: 0.7585

Position: – Long at 0.7645
Target:  – 0.7800
Stop: – 0.7585

New strategy :

Hold long entered at 0.7645, Target: 0.7800, Stop: 0.7585

Position: – Long at 0.7645
Target:  – 0.7800
Stop:- 0.7585

Although aussie has fallen again after meeting resistance at 0.7649, loss of near term downward momentum should prevent sharp fall from here and bring rebound later, above said resistance at 0.7649 would signal low is formed, bring a stronger rebound to 0.7685, break there would signal the retreat from 0.7750 (last week’s high) has ended, then retest of this level would follow, above this resistance would extend gain to 0.7778 (last year’s high), however, break there is needed to retain bullishness and extend headway to 0.7840-50 but price should falter below 0.7900.

In view of this, we are holding on to our long position entered at 0.7645. Only below 0.7585 would abort and signal top is formed instead, then further choppy trading would take place and risk is seen for pullback to 0.7530-40 but indicated support at 0.7491 should remain intact.

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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