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The FX market was not very active yesterday as a lot of traders were away for the US Columbus day. However, we have seen some reaction during the Asian trading hours, when USD fell across the board but those moves are now already reversing, especially on AUDUSD which is down more than 70pips from earlier highs.

On AUDUSD we were tracking that corrective rally from the low and noted that 0.8800 could turn into resistance which has happened overnight. The current intraday decline looks quite strong based on sentiment and volume so it may be start of something bigger. We would not be surprised to see a revisit of the 0.8650 low in this week. For now 0.8900 remains invalidation level; as long this one holds trend is down.

AUDUSD Elliott Wave Analysis foreign exchange currency trading forex October 14 2014
AUDUSD 1h Elliott Wave Analysis

EURUSD could be heading lower today to retest the 1.2600 level as the rally from 1.2600 unfolded in three legs, so we see it as a correction within an incomplete and minimum three waves of decline. A break of 1.2650 should cause a downwards acceleration.
EURUSD 1h Elliott Wave Analysis