AUDUSD is trading bearish this year, ideally unfolding a bigger wave V impulse as part of a big cycle. We see price specifically unraveling blue wave 3 as part of a decline, which is now approaching the lower Elliott wave channel line, from where a temporary wave 4 correction can follow. A rally in three waves from the lows will confirm a completed wave 3 and a wave 4 correction in play with possible resistance near the 0.7290 area.
AUDUSD, Daily
Now on the 4h chart of AUDUSD, we see a completed corrective retracement from the 0.7082 level which we labelled as corrective wave 4) as part of a downtrend. The following decline from the swing high of 0.7315 level, is now seen as wave 5), final leg of blue wave 3 which can extend its drop towards the 0.7000/0.6940 possible support region.
AUDUSD, 4h
