Elliott Wave Analysis: Bears On AUDUSD Aiming for 0.6900/0.6800 Area

Intermediate

AUDUSD has been trading bearish for 2018 and by the looks of it, price can be unfolding a big, bearish impulse, down from 0.814 area. An impulse is a five-wave development which tells us where the trend is going, and in our case we see it going lower. We specifically see price at the start of a wave 5, final leg of a bearish impulse which is a five-legged structure, and can take price towards the 0.6900/0.6800 region in upcoming months.

Around the mentioned region, some support can be seen and maybe a bullish turn can follow.

AUDUSD, Daily

audusd daily

Now, taking a closer look at the AUDUSD 4h chart, we can see that price is firmly falling from the 0.739 area, where former bigger correction had ended. Current sharp drop can be labelled as wave 1), first wave of an upcoming five-wave development within higher degree wave five, that can look for support and a bounce near the 0.719/0.717 region. From the mentioned area, a temporary pullback as wave 2) may follow, which can later look for resistance and a new bearish reversal at the 0.7300 area (area of a lower channel line.

AUDUSD, 4h

audusd

Gregor Horvat

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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