Aussie has turned down a few weeks back, from 0.7778 to be exact, from where sharp turn suggest that pair can still be trapped in a very big Elliott Wave triangle formation visible on a daily chart. If that's true, then market is now making another three wave decline, this time in wave D) that can see more weakness to 0.7200 area this week, where pair may find some support for a bounce into wave E, final leg of a triangle in wave four. Short-term swings suggests that current minor recovery is subwave 4 of C) so int the short-term AUD may stay under pressure.
AUDUSD, 4H
AUDUSD, Daily
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.
Basic Triangle Pattern:
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