AUDUSD: Complex structure with downside risk
Risk-off sentiment (see my article) has driven down AUDUSD in the past couple of days and is likely to dominate the cross until analysts figure out just why stock, bond and commodity prices are falling in unison.
Management and risk description
From an Elliott Wave perspective, the Ozzy has been trading within a complex corrective structure these past months and is now probably undergoing a Wave-c decline (refer daily chart below). Also, from a classical charting standpoint it is tenable to interpret a completed two-month Head and Shoulders reversal pattern (see daily chart) with a downside objective of .7210. Resistance at .7490/.7520 probably now contains for sell-off towards the mid .7300s en route to the low .7200s over coming days.
Entry: AUDUSD seen as sell today at .7485/.7500 (directly below .7430 cancels).
— Edited by Susan McDonald
Non-independent investment research disclaimer applies. Read more