AUD/USD could target 0.90 soon; GBP/USD could bounce off

Commodity currencies are falling sharply while EUR, GBP and CHF are showing some evidence of finding support. We in fact were expecting such a scenario as EURUSD was setting up for a corrective rally while AUDUSD was looking bearish for wave C/3. We see the Aussie in sharp fall that may extend to the 0.9000 psychological level in days ahead.

On the 1h chart of AUDUSD we are tracking an impulse down with wave iii) now in action and that should be made by five waves, so a decline can extend to 0.9040 in the sessions ahead. 0.9184 is short-term invalidation level, that can also be a stop level for any short set-up in upcoming wave iv.

AUDUSD 1h Elliott Wave Analysis

GBPUSD is showing a slightly different structure than EUR. We see wave 3) going even lower as the latest slow price action above 1.6030 looks corrective, so ideally we will see test of 1.600 and then a bounce in price for a larger corrective fourth wave.

GBPUSD 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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