USD/CNH and AUD/USD approaching reversal - Elliott wave analysis

Gregor Horvat Wavetraders

Good day traders,

USDCNH and AUDUSD can be in negative correlation; USDCNH can be trading in a sharp decline, our of a possible Elliott Wave triangle within former b, towards possible support/bullish reversal at 7.04/7.02 zone. At the same time, we see price on aussie recovering, ideally unfolding a minor leg c of wave Y, which can look for resistance/bearish turn at the 0.622/0.630 area.

Once wave c on USDCNH fully develops, and we see a recovery in ideally five legs, that is when AUDUSD can start turning to the downside. Here as well we like to see a drop in impulsive fashion, below the 0.5869 level.

USD/CNH and AUD/USD, 1h

Trade well.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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