AUDUSD has turned down from 0.7834 high in May after wave C-circled completed a big corrective wave IV flat pattern. A flat has a 3-3-5 sub-waves, so it’s a contra-trend movement that should send price back to the lows. So far, market made a very good and strong bearish turn to 0.7130 with clearly impulsive personality, thus we believe that big black wave V is underway.
AUDUSD Daily Chart
On the lower time frames, AUDUSD made five waves down from 0.7836 which is the most important and strong evidence of a bearish trend. However, we always need to be aware of corrective reversals, which are short-lived patterns against that five wave structure. That said, current upward reversal is probably a new contra-trend pattern that will ideally look for a top at 0.7400-0.7500 resistance area from where new sell-of will be expected in days ahead, after a completion for a double zigzag.
AUDUSD 4 Hour Chart