AUD/USD: Minor Correction within Uptrend

While other currencies lost some ground against the buck yesterday, the Australian dollar remained strong. The reason is economic data from this week, such as PPI (0.8) reported on Sunday, and CPI (0.9) that also beat expectations.

Looking at the technical side of this pair, the prices are acting very strong, and we expect this price action to continue in the future, as we are looking for a progress within a black wave 3. Notice that a recovery from 1.0560 is very strong, very typical price action of a wave three, which also broke through the upper side of a base channel, another evidence for a bullish continuation.

Guest post by Gregor Horvat

However, in the very near future (next session or two) we would not be surprised to see Aud/Usd reversing lower, but only temporary, into a minor correction, maybe towards 1.0950-70, before uptrend accelerates towards 1.12.

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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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