AUD/USD Awaiting Wave-4 Pullback Before Rate Decision

Chris Svorcik Elite CurrenSea

Hi traders,

the AUD/USD is showing a strong bearish decline after falling almost 400 pips from the top at 0.71. Friday’s daily candle, however, closed as a Doji (indecision) candle probably because later this week the AUD is awaiting an interest rate decision from its Central Bank.

AUD/USD

Daily

The AUD/USD bearish price action is very typical for a wave 3 (purple) due its strong bearish momentum. The downtrend is expected to continue lower and break below the support zone (green box) after a potential pullback.

4 hour

The AUD/USD seems to have completed a wave 3 (green) impulse. A break above the resistance line (red) could indicate a pullback in wave 4 (green) as long as price stays below the 50% Fibonacci retracement level of wave 4 vs 3.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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