AUD/USD Long-term Downtrend Continues After Completing WXY Correction

AUD/USD

Daily

The AUD/USD daily chart is in a long-term downtrend. Price has recently made a strong bearish bounce at the resistance trend line (red) after completing a complex WXY (blue) correction. The current bearish breakout (green check) is likely to test the previous bottom (blue) unless price breaks above the resistance (red) as this invalidates (red x) the current wave outlook.

4 hour

The AUD/USD is bearish breakout looks like a wave 3 (blue) pattern as price is breaking below the 161.8% Fibonacci target. A bullish pullback (green arrow) could indicate the end of the wave 3 and the start of a wave 4 but a downtrend is expected to bounce at the previous resistance. A bearish continuation would confirm a wave 3 (blue) extension towards the Fib targets of wave 3 vs 1.

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Good trading,
Chris Svorcik
Elite CurrenSea