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AUDUSD is in a bearish reversal mode since last Friday when the market completed a five wave recovery at 0.9528. As such, the contra-trend reaction has unfolded in three waves – a move that was expected as this is the minimum substructure of a corrective movement.

Notice that now we have three waves down, with wave C trading at the area of a previous fourth wave. We can also see a decreasing momentum in this wave C based on reading on the Force index indicator.

With that in mind, a reversal to the upside may follow soon, but it will be confirmed only if the price reverses back to 0.9456 level. Nice technical support for wave C comes in at 0.9280.

aud sep 27 2013 1h. elliott wave analysis technical graph for currency trading foreign exchange