Elliott Wave Analysis: AUDUSD and S&P500

We can see that stocks are still under a strong bearish pressure so the Aussie may suffer as well. In fact, we see AUDUSD making a nice leg down from the highs, either its wave A or wave 1, but in both cases it means that the pair should see even lower levels within a three wave decline, after a bounce up in wave 2/B.

AUDUSD, 1H

Stocks are also in a nice intraday downtrend, which is expected to continue through the next few sessions, as we need five waves down from 2390 before the market may turn higher again. So for now, let’s stick with the falling prices, meaning that the next short-term bounce will be limited, likely wave four of an ongoing decline that can extend down to 2320 area.

S&P500, 1H

S&P500 vs AUDUSD, 1H

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!

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