AUDUSD is recovering since the beginning of the year, giving us an idea that a five-wave decline had found a low at the 0.667 level, and that now a three-wave recovery is in play. This recovery has already unfolded wave A), and is now unraveling corrective wave B), which can show up as a flat correction. This flat correction can later look for support and a bounce near the 0.707 level (level of a former swing low) or lower around the 0.694 regions, from where a new five-wave recovery into wave C) can follow. A later break above the 0.729 level would confirm a bullish continuation.
10 Year US notes can be unfolding a flat correction since May of 2018, but even with this bearish structure, there is room for more upside as current slow price move above 121 looks like a corrective pause within the current uptrend. Ideally, that’s wave four, either of wave C or maybe even wave 1, but in both cases, we think that one leg up is coming before price turns lower for a pullback.
10 Year US Notes, DailyGet the 5 most predictable currency pairs