Hello traders,
AUDUSD made a bigger, five-wave recovery, up from March lows. We can count five completed waves in red labellings, with a top at the 0.706 level. That said, after a five-wave move develops, price tends to make a temporary pause within the trend; a correction. In our case we are tracking an A)-B)-C) move, where current wave B) is unfolding a triangle pattern. Once a triangle fully develops, a third leg lower as wave C) may show up, and can look for support/bullish reversal zone at the 0.668 level, level of a former swing high, or lower at the Fib. ratios of 38.2/61.8 (0.645/0.610 region), where bears in a correction can slow down.
All being said, once A)-B)-C) move develops, and we see a new turn higher in five legs of a lesser degree, that is when bulls can be making a comeback.
AUD/USD, 4h
Trade well,
The EW-forecast team
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