AUDUSD has turned down from 0.7834 high in May after wave C-circled completed a big corrective wave IV flat pattern. A flat has a 3-3-5 subwaves, so it’s a contra-trend movement that should send the price back to the lows. So far, the market made a very good and strong bearish turn to 0.7130 clearly see an impulsive personality, thus we believe that the big black wave V is underway. That been said, we are looking lower as long as 0.7834 holds, so the current bounce is most-likely only a corrective wave two.
AUDUSD, Daily
On the lower time frame, AUDUSD has made five waves down from 0.7836 which is the most important and strong evidence of a bearish trend. However, we always need to be aware of corrective reversals, which are short-lived patterns against that five wave structure. That said, the current upward reversal is probably a new contra-trend pattern, wave 2 that will ideally look for a top at 0.7400-0.7430 resistance area from where a new sell-off will be expected this week, after a completion for a double zigzag.
AUDUSD, 4H
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