AUDUSD broke higher recently, up into wave C-circled that is part of a big corrective wave IV which looks like a flat. A flat correction is a 3-3-5 pattern; a contra-trend movement that should send the price back to the downside after a completion. So far, markets made a very good and strong bearish turn to 0.7360 that appears to be an impulse, thus part of a bearish pattern in the big black wave V. We are looking lower as long as 0.7834 holds.
AUDUSD, Daily
On the lower time frames, AUDUSD is looking even lower, and it’s falling very aggressively so we need to consider the idea that the market is already in extended wave three headed down to around 0.7150-0.7200 area. The fact is that we always need to try to label the wave count so that we stay with a trend. That said we are looking straight down now towards 161.8-200% Fibonacci projection zone where we may see a recovery up into a red wave 4) that can be very interesting to join the downtrend while market trades beneath 0.7480.
AUDUSD, 4H
