Elliott Wave Analysis On Copper And The AUDUSD; More Weakness Could Be In For BOTH

Gregor Horvat

Copper is under bearish pressure for the last few weeks, currently testing an important support line connected from December 2015 low, which can be broken if we consider that A-B-C-D-E triangle can be finished. If that’s the case then current decline down from 2.2200 will be an impulsive leg, first wave as part of a bigger impulsive bearish cycle that will take price below 2015 levels. We expect a breakout while 2.1488 remains in place.

Copper Daily Chart

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If copper is really going to break-down then AUDUSD should also come much lower. For now, we do not see any changes on the 1h chart; just a corrective wave up that can be looking for a top this week at 0.7650-0.7675 area.

AUDUSD Hourly Chart

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Source: www.ew-forecast.com

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