Elliott wave analysis: AUDUSD and NZDUSD Turning Bearish
AUDUSD is currently recovering, however in an overlapping fashion, which suggest a corrective recovery to be in play. We are looking at a wave 4) of a higher degree, which can be near completion with its w-x-y rally. Possible resistance and a bearish turn for the pair can be at the 0.614 level, level of a former swing iv, and at the upper corrective channel line. That said, an impulsive drop below the lower corrective channel line would be first evidence of a completed pullback, a that wave 5) is underway.
NZDUSD is trading similar, now at the end of a bigger wave 4, with resistance at the Fib. Ratio of 50.0 (0.604/0.61 region). An impulsive drop here would suggest further weakness, below the 0.547 level.
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