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The Aussie moved lower in the past week as expected, and hit a projected Fibo ratio; 2.00 x wave (1) before reversed to the upside.  AUD USD Elliott Wave Analysis June 6 2012

AUD USD Elliott Wave Analysis – Click image to enlarge

Notice that current recovery is now already testing falling EW channel resistance line, where a breakout will definitely put wave (4) into action.

We will be tracking a three wave rise from the most recent lows, before we may continue to look to the downisde.

See the previous update on AUD/USD.

This is Advanced Market Forecasting and Technical Analysis by Gregor Horvat – a guest post for Forex Crunch.

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The Australian central bank cut the benchmark interest rate by 0.25% to 3.50% as expected. The economy is hanging solely on the booming mining industry at the moment (which is also hurt by weaker Chinese demand) and inflation is low. Also the rising worries about Spain boost the greenback and also weigh on AUD/USD.