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AUD has been one of the weakest currencies in the last two weeks after the pair reversed down from around the 0.9300 region: a move which has been expected because of a corrective price action since start of July.

We are talking about a blue wave (4) that was an expanded flat. If that is the case, then the pair is now in wave (5) that needs to be made by five sub-waves, so more weakness is in view if we consider that the price is now at the end of a red wave 3) that will be looking for a temporary support around 0.8850 (261.8% Fibonacci extension of wave two).

In the next few days price could recover, but only in a corrective fashion back to 0.9000 which could be a nice are for shorts.

audusd aug 05 2013 4h Elliott Wave Analysis for technical trading forex