Home AUDUSD: Break of 1.0220 Support After RBA Puts 1.0100 In

AUDUSD: Break of 1.0220 Support After RBA Puts 1.0100 In

AUDUSD fell through the 1.0220 support today, which was expected after last week’s break through the lower side of a corrective channel followed by a pull-back on Friday that found a top at 1.0322 after the NFP report, exactly at that channel line that turned into a resistance.

That’s a very nice clear continuation pattern that could send the AUDUSD even down to 1.0100 level in this week. The reason is that the wave count that shows a potential scenario for wave three of three sell-off which is typically the strongest wave in a five wave sequence. As such, the pair remains in bearish mode as long as 1.0322 swing high is not breached.

AUDUSD Elliott Wave Technical Analysis May 7 2013 for currency trading

The reason for a sell-off today was the RBA rate cut from 3 to 2.75%, which was in eyes of speculators already days ago after very bad recent economic indicators in Australian and China. With that said, technicals were right again and fundamentals just a catalyst. Current weakness was already evident a week ago.

For more details on AUDUSD please check our video below the chart, recorded on April 29th 2013; it also includes GBPUSD.

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Gregor Horvat

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!