EUR/USD and AUD/USD could stage big corrections from lower

We see that the USD keeps moving higher across the board. AUDUSD reached new lows during the Asian session, while GBPUSD just fell to 1.6160 once again after worse than expected UK Sep Manufacturing PMI figures.

Our attention in the days ahead will be on EURUSD where we expect a corrective rally in sessions ahead, but from a new low. We are waiting on a completion of wave v) of (iii) that could happen around 1.2550. Then, we will ideally get a pullback in fourth wave back to 1.2660-1.2700 area before the downtrend resumes.

EURUSD 1h Elliott Wave Analysis

On AUDUSD, the price fell to a new low after worse than expected retail sales figures that has been technically expected as we were looking for a move down into wave v) of (iii). There is room for even lower levels, to 0.8620 but keep in mind that the price is in the final stages of an impulse, so sooner or later a bounce will follow in corrective manner.

AUDUSD 1h Elliott Wave Analysis

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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