AUDUSD Is Bearish – Elliott wave Analysis
Today let’s look at AUDUSD, its daily and lower degree charts.
AUDUSD is trading bearish this year, ideally unfolding a five-wave drop from 2018 highs as part of a big bearish cycle. Reason we favor a bearish view more than a bullish one is simple; a sharp and firm reaction through an important trendline support that is connected from 2016 lows.
That said, in the next few weeks we expect a continuation lower; ideally price will drop to 0.7330 area to complete wave 1; first leg of a much bigger decline.
Now, if we look even closer on the price structure since May of 2018 lows on the 4h time-frame, we can see a three-wave retracement that unfolded has traits of a corrective recovery rather than an impulsive one, meaning even this realization points to more weakness on the pair. On the chart below, we see a completed correction at 0.7677 level, followed by a sharp drop which breached below the corrective channel line and can signal a new five-wave bearish development to follow towards 0.7411 and lower.
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
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