AUD/USD Could Break Lower In Days Ahead

Grega Horvat

A few weeks back AUDUSD has turned bullish for some time, but most likely only temporary as rally from the low was having an overlapping structure. We know that this is a characteristics of a contra-trend price action, so trend remains bearish for now within impulse that is in play since mid-2014. We see market moving sharply lower now after broken upward channel, so wave (5) is in play for a move down to 0.7100-0.7300 area.

AUD/USD Daily Elliott Wave Analysis

AUD/USD Daily Chart

AUD/USD is trying to recover, now moving above the upper trendline of a downward channel so we suspect that five waves down is complete and that price is headed up in three waves. We see a corrective pullback coming which could retrace back to 0.7760-0.7860 resistance area before downtrend may resume.

AUDUSD Daily Elliott Wave Analysis

AUD/USD 4 Hour Chart