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AUDUSD downwards correction could be near completion – Elliott

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

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!