Elliott Wave Daily / Written by Action Forex / May 11 11 08:22 GMT
Source link:http://www.actionforex.com/trading-signals/elliott-wave-daily/trade-idea:-aud%10usd-%e2%80%93-hold-short-entered-at-1.0875-20110511139662/
AUD/USD – 1.0872
Recent wave: Wave 4 ended at 0.8066 and wave 5 has possibly ended at 1.1012
Trend: Up
Original strategy :
Sold at 1.0875, Target: 1.0600, Stop: 1.0940
New strategy :
Hold short entered at 1.0875, Target: 1.0600, Stop: 1.0940
Although the Australian dollar has continued to edge higher, if our view a temporary top has been formed at 1.1012 is correct, upside would be limited to 1.0900 and bring retreat later, a break of yesterday’s low at 1.0736 would suggest the rebound from 1.0537 has possibly ended and bring weakness to 1.0660/65, below there would confirm this view and another fall towards said support would follow.
In view of this, we are holding on to our short position entered at 1.0875. Only above 1.0930/35 would abort and risk a stronger rebound to 1.0980/90 but break of recent high of 1.1012 is needed to confirm uptrend has resumed.
Our preferred count on the 4-hour chart is that the move from 0.8066 is the wave 5 with i: 0.8860, ii: 0.8315, wave iii is an extended move with 1: 0.9223, 2: 0.8770, 3: 1.0183, iv: 0.9536 and wave 5 of 3 has either ended at 1.1012 or may bring one more rise to 1.1060 (61.8% projection of 0.8066-1.0257 measuring from 0.9706).
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About the Author
Candlesticks Intraday Trade Ideas Update Schedule (GMT):
1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530
Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF
Elliott Wave Daily Trade Ideas Update Schedule (GMT):
AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1330 - 1400
