Elliott Wave Analysis: Is AUDUSD Ready to Resume Lower?

Hello Traders,

In this Analysis, we will have a look at AUDUSD.

AUDUSD short-term Elliott Wave view suggests that the decline to $0.7308 low ended blue wave (A) coming from 6/06/2018 peak ($0.7676). Above from there, the 3 waves recovery to $0.7484 high ended in blue wave (B). The internals of that blue wave (B) unfolded as Elliott Wave Zigzag correction where red wave A ended at $0.7424 high. Subdivision of red wave A of (B) unfolded as 5 waves where black wave ((i)) ended at $0.7342. Black wave ((ii)) ended at $0.7312, black wave ((iii)) ended at $0.7404. Then black wave ((iv)) ended at $0.7368 and black wave ((v)) of red A completed at $0.7424 high. Down from there, red wave B ended at $0.7359 low.

Up from there, red wave C of blue (B) ended at $0.7484 high with internals also unfolded in another 5 waves structure. Black wave ((i)) ended at $0.7408. Wave ((ii)) ended at $0.7371, and wave ((iii)) ended at $0.7483. Then black wave ((iv)) ended at $0.7452 and black wave ((v)) of C ended at $0.7484 high. This rally also completed blue wave (B) bounce there, after reaching the 100%-123.6% Fibonacci extension area of red A-B at $0.7475-$0.7503 area.

Near-term, while bounces fail below there, we expect the pair to resume lower in blue wave (C). However, a break below $0.7305 low remains to be seen to validate this view & until then a double correction higher in blue wave (B) bounce can’t be ruled out. We don’t like buying it.