Elliott Wave Analysis: AUDUSD Trading In A Temporary Correction Within A Downtrend
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. A few months back pair made a very good and strong bearish turn to 0.7130 with clear 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 current bounce is most-likely only a corrective wave two that can be near completion.
AUDUSD, Daily
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As we see on the 4h chart of AUDUSD, price keeps trading higher with a slow and overlapping price move, ideally within a complex correction that seems to be midway through its completion with price now trading in the final leg C) of 2. As such more upside may still follow, possibly towards the 0.7720 level, where previous sub-wave 2) can act as a resistance and a new turning point. Also we see an ending diagonal in wave C) that is a reversal pattern, so keep an eye on 0.7596 swing where breakdown would suggests that bearish turn is happening.
AUDUSD, 4H
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