AUD/USD: Expect sideways/higher price action for a lengthy period of time – Goldman Sachs

The Goldman Sachs analysts are out with their Elliot wave analysis on the AUD/USD pair, calling for higher price-action over the long-term.

Key Quotes:

“AUDUSD started a 5-wave decline at the '11 high.

A typical 5th wave will test the bottom of its preceding 3rd; in this case, the low from Jan. '16 at 0.6827. It will often exceed that level continuing on towards a minimum target derived from the length of wave 1; in this case 0.6443.

While it hasn't quite made it to 0.6443, it has however posted a fairly strong bullish hammer pattern on a test of the 0.6827 low from Jan. '16. Moreover, monthly oscillators are back at the base of their range and starting to curl over; near similar levels to where they based in '15/'09. This should, therefore, be an important place to watch for a reversal in trend. The question to ask now is whether it's gone far enough already.

Once 5-waves are in place, AUDUSD will likely enter an extended period of positive price action; i.e. overlapping/higher for up to a year. That might retrace at least 23.6% back to 0.7765 and up to 38.2% at 0.84.

Watch for signs of a base/reversal against 0.6827. Could extend as far as 0.6443. Eventually expecting sideways/higher price action for a lengthy period of time.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tumbles to weekly lows on disappointing PMI data

EUR/USD dropped below 1.1300 after Germany's Manufacturing PMI dropped to 44.5 points, below expectations and reflecting a deep contraction in the sector. Other PMIs are mostly weak as well. US retail sales are eyed.

EUR/USD News

GBP/USD bounces off 1.3000 on upbeat UK retail sales

GBP/USD escaped the 1.3000 line after UK retail sales beat with a jump of 1.1% in March, much better than expected. A risk-off mood weighed on it earlier. US retail sales are next.

GBP/USD News

USD/JPY: risk aversion likely to result in limited slides

April Japanese Nikkei Manufacturing PMI improved to 49.5 from 49.2, still in contraction territory. European data spurred demand for safe-haven assets amid renewed concerns of economic slowdown.

USD/JPY News

US Retail Sales Preview: Let the spending begin

Overall retail sales are predicted to rise 0.9% in March following February's 0.2% decline. Sales excluding automobiles are expected to climb 0.7% after falling 0.4% the prior month.

Read more

Gold: A dead cat bounce from 2019 lows?

Gold (futures on Comex) staged a sharp $4+ reversal last hour from fresh 2019 lows of 1273.05, as a sudden turnaround in the risk sentiment called on the gold bulls for rescue amid a resurgence of concerns over dwindling Eurozone economic growth.

Gold News

Majors

Cryptocurrencies

Signatures