ORBEX AUDUSD: Correction to Wave (4) Could Validate Bears!

I am not certain whether the current structure on the AUDUSD structure is corrective or not. Fibo levels suggest it is, but this could be easily invalidated.

It is a minor 5 down to 0.6676 and either a a) reversal, where an impulse 5-wave move is going to take place, or a b) correction that is going to complete intermediate wave 4 and head lower near 0.66 -(100% FE of intermediate wave 1, or else, duplication of intermediate wave 1).

Since we have not received an invalidation at the 0.7000, or a sign of a stronger bullish bias as of yet by breaking outside the descending channel, I analyse scenario b).

In case prices stop by the descending trendline resistance or at 70c. and reverse down, the chances of reaching 66c would increase. The validation would be supported after a successful breakout below the previous low at 0.6676.

Should bears take over once again we could head minimum down to 0.6800 nevertheless.

Stavros Tousios
Head of Investment Research
Orbex

This analysis is provided as general market commentary and does not constitute investment advice.