AUDUSD: Updated Wave count and target
The corrective rally in May has been stopped at the bottom line of the upward channel.
The support has been changed to the resistance. It is a good confirmation of a trend change.
As there was overlap between Wave 1 & Wave 4, I have updated the wave count.
In the new wave count, (2) = 0.382 x (1). As a typical retracement target for Wave (2) is 0.618 x Wave (1), I am not very happy about it. However, it is a good Fibonacci relationship that I can take.
Wave 2 = 0.618 x Wave 1, so I am much more comfortable on the smaller degree count.
Based on the new count, the decline can be quite deep. We have two short-term target zones:
(1) Zone 1
Reverse Fibonacci 1.382 of Wave 2 : 0.7311
Current Wave length = 1 x Wave 1 : 0.7276
(2) Zone 2
Reverse Fibonacci 2.0 of Wave 2 : 0.7148
Current Wave length = 1.382 x Wave 1 : 0.7123
If the price will go above 0.756, the count may be changed.
More charts can be found at www.white6intelligence.com
The support has been changed to the resistance. It is a good confirmation of a trend change.
As there was overlap between Wave 1 & Wave 4, I have updated the wave count.
In the new wave count, (2) = 0.382 x (1). As a typical retracement target for Wave (2) is 0.618 x Wave (1), I am not very happy about it. However, it is a good Fibonacci relationship that I can take.
Wave 2 = 0.618 x Wave 1, so I am much more comfortable on the smaller degree count.
Based on the new count, the decline can be quite deep. We have two short-term target zones:
(1) Zone 1
Reverse Fibonacci 1.382 of Wave 2 : 0.7311
Current Wave length = 1 x Wave 1 : 0.7276
(2) Zone 2
Reverse Fibonacci 2.0 of Wave 2 : 0.7148
Current Wave length = 1.382 x Wave 1 : 0.7123
If the price will go above 0.756, the count may be changed.
More charts can be found at www.white6intelligence.com
