Elliott Wave Analysis: Bears Pushing Price Lower; The Fifth And Final Wave Can Be In Play
AUDUSD broke higher recently, up into wave C-circled that is part of 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 downside after a completion. So far, market made a very good and strong bearish turn to 0.7360 that appears to be an impulse, thus part of a bearish pattern in big black wave V. We are looking lower as long as 0.7834 holds.
AUDUSD, Daily
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On the lower time frames, we saw that AUDUSD had fallen very aggressively last week from 0.7720, which appears to be wave three of an impulsive decline, so we need to consider the idea that top is in place and that big downtrend continuation is in the cards. As such, we will expect more weakness after any three wave bounce which may show up in the near-term in red wave 4) as wave 3) can be near completion.
AUDUSD, 4H
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