Today let’s take a look at AUDUSD and Crude Oil and their intra-day development.
AUDUSD is trading in a bearish leg as part of a higher degree wave 5. We know that wave five is an impulse, meaning it must consist out of five waves. At the moment we see only three of them fully unfolded, which means two more must show up.
That said, we see current price rising, but only for a temporary correction within sub-wave iv of 5. Resistance is seen at Fibonacci ratio of 38.2 and near the 0.7798 level.
AUDUSD, 1H
Let’s now switch to Crude oil. On crude oil we are tracking a bigger three-wave decline, with first wave a completed. Ideally recent rise that followed was sub-wave a) of b that found a top near the 51.20 level. Current drop that is now underway can be sub-wave b) that can also unfold a minor three-wave move within itself, before a final and last push higher can come into play within sub-wave c) of b. The whole correction within blue wave b can later search for a top at the former swing high of wave ii) at the 51.75 level and near the Fibonacci ratio of 50.0/61.8. However if prices continues to drop sharply, then we can say wave b already found a top and that blue wave c can be in progress.
Crude OIL, 30Min
