BigShouldersTrading

Potential long AUDUSD continuation into the next m15/h1 short

FX:AUDUSD   Australian Dollar / U.S. Dollar
Orange lines - daily wave, classic ABC continuation
Green/Red lines - h1 exhaustion trading levels for the daily C point
Magenta lines - m15 exhaustion trading levels for low time-frame reactions

We were initially looking at 0.7850 as a general retracement target for this up move; but same as before the last wave down has not yet been confirmed by the current up movement as final.
Instead we have highlighted our next m15 (0.7907) and h1 (0.7966) short levels with the colored lines.
Currently we have bumped into an intermediate m15 level around 7800 which can be used for profit taking. On the short side, the down move from here can give another 0.7700 retest (0.7705-0.7675) that would look as a continuation on h1. We have highlighted this potential scenario with the new up arrow. Continuation plays should be done in the context of partial profit taking here.
Still left on the chart is also the untested h1 level (0.7637) around the general 0.7600 area for potential longs.
Comment: Profit taking on the 0.7800 level gave the expected short movement with the high of the continuation range (0.7705) being tested now.
We would like one more thrust down for our trade logic to be met for a stand-alone long trade. As is, 0.7705 can be used for a 'blind" continuation only if profits were taken at 0.7800.
On the short side from 0.7800 there was a setup to be taken but not at the time this idea was posted but rather from the double top with similar timing as the gbpusd short which we posted - that was a nicer move. :)
Have a good weekend!

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