The AUDCAD rally that started in Oct 2018 from 0.9107 low can be seen as an impulse structure, labelled 1-2-3-4-5. According to Principle, a three-wave correction in the opposite direction follows every impulse.
AUDCAD's seems to be in the corrective phase since 18th Dec 2018 and it's unfolding as a combination. So far, we have seen a (w)-(x)-(y) combination structure in wave W, double in wave X and wave Y seems to be unfolding as a simple pattern.
The overall correction in wave (B) is expected to terminate within the blue box and maybe retest the channel support. If this count is correct, a 5-3 wave cycle will be considered to be completed, and the trend can be expected to resume in the direction of the main impulsive sequence in wave (C).
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