Elliott Wave Analysis: AUDUSD Maintaining Its Bearish Momentum
AUDUSD has turned down from 0.7834 high in May after wave C-circled completed a big corrective wave IV flat pattern. A flat has a 3-3-5 sub-wave structure, so it was a contra-trend movement that should send price back to the lows. So far, market made a very good and strong bearish turn to 0.7130 with clearly 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, so bounce is most-likely only a corrective wave two that can be completed so more weakness could be in store.
AUDUSD, Daily
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On the lower time frame, Aussie has been trading higher last week, towards 78.6% Fibonacci retracement level that turned into a resistance based on recent 150 pip sell-off shown on 4h chart. We see first evidences that market has accomplished a deep corrective rally since end of May. Also, it would be nice to see even more downside in the near-term, with impulsive price action through a channel support line that would put market in very strong bearish mode, possibly for 0.7140.
AUDUSD, 4H
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