Elliott wave Analysis: AUDUSD and S&P500
Aussie can be unfolding a complex correction within wave 4, which looks more and more as a triangle pattern. A triangle pattern is a five-wave, sideways movement which unfolds prior to the final leg within a trend, so once corrective wave 4 fully unfolds, a new drop into wave 5 may follow. Now we see price unfolding sub-wave d of 4, which can look for support at the lower triangle line. A later drop below 0.7318 level would confirm more weakness.
S&P500 is now trading in late stages of wave c of 5 of a big Elliott wave ending diagonal so traders must be aware of an upcoming bearish turn, probably around 2815/2835 region. However, only a five-wave fall may confirm a top in place. In our case we would have to see a drop below 2750 area. We can also see a divergence on the RSI, which indicates an upcoming bearish turn.
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