Elliott Wave Analysis: Bears Pushing Prices Lower; Sub-Wave 2 Could Be Around The Corner
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.
AUDUSD, Daily
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On the lower time frames, AUDUSD has made 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 corrective reversals, which are short-lived patterns against that five wave structure. That said, current upward reversal is probably a new contra-trend pattern with three waves that will ideally retrace back to 0.7370 resistance from where we would look for a new and even much stronger sell-off.
AUDUSD, 4H
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