Elliott Wave Analysis: Big Corrrection On AUDUSD Looks Completed; More Weakness May Follow
On the Daily chart of AUDUSD we are observing a big, slow and overlapping price affair unfolding. This specific pattern is known as a contracting triangle correction that is made out of five sub-waves. As we can see on the updated chart, final wave E could have already found its top and current weakness may be the start of a new higher degree impulse. Well, if that is the case, then we will see a breach beneath the 0.7511 level in weeks ahead.
AUDUSD, Daily
Aussie has turned sharply lower last week which has been expected since we identified an ending diagonal in wave C) position. That’s a reversal pattern that put a bearish impulse in progress, wave 1 that found a base at the 0.7489 level. As such current bullish rally is the start of wave 2, which may find an ideal reversal zone around the 50.0 or 61.8 Fibonacci ratio, for where a bearish breakdown may follow.
AUDUSD, 4H
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