AUD/USD Elliott Wave: A Free Fall?

OK, we have seen enough, AUD/USD is not falling in wave (v) as we firstly thought, but its more likely in wave (iii).

Why!? Its because of the price action personality, which helps us to label the chart in a correct way. In wave five you will tend to see slow moves with decreasing volumes and divergence on a lot of oscillators/ indicators.

Guest post by Gregor Horvat

Well, in a current sell-off indicators are pushed into new extreme levels with increasing volume, which means only one thing; continuation of a larger trend which is clearly bearish!

So if we believe that pair is falling in wave three of an impulsive move then more weakness to come, because impulses are structured by five waves! Corrective rallies should be an opportunity for shorts.

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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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