Elliott Wave Analysis: Bullish Momentum Continues
AUDUSD is turning down from 0.7834 high for the last two weeks where wave C-circled might completed a big corrective wave IV which looks like a flat. A flat correction is a 3-3-5 pattern; a contra-trend movement that should send price back to the lows after a completion. So far, market made a very good and strong bearish turn to 0.7170 with impulsive personality, thus we believe that big black wave V is underway. That been said, we are looking lower as long as 0.7834 holds, but be aware of a corrective retracement up into sub-wave two.
AUDUSD, Daily
On the lower time frame, AUDUSD has five waves down from 0.7836 which is the most important and strong evidence of a bearish trend. However, we always need to be aware of a corrective reversals, which are short-lived patterns against that five wave structure. That said, we would not be surprised if market will bounce with three waves this week, ideally back to 0.7340 resistance from where we would look for a new and even much stronger sell-off.
AUDUSD, 4H
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