Here the market is starting to show signs of putting in a hard floor after a long-term 5 wave sequence. Whilst we are trading the bottom in the range, the cycle lows have held so far which is sending loud messages that the downtrend is tired. A textbook double bottom pattern is in the making here at 0.683x.
If I am correct here and the market has put in the 5 wave sequence as anticipated, then we 'know' that a corrective patten is to follow. This ABC will eventually grind the market back towards the 38.2% retracement of the last leg which comes into play at 0.72715. Confidence will increase for those who believe the USD bearish story once we get above the soft resistance at 0.710x.
To put simply, it is time to start paying very close attention for signs of a bottom forming here. I am expecting the market to continue grinding slowly higher for a very long period of time as we mark the highs in USD.
Best of luck all those already riding it from the chatroom, with a pinch of luck we have caught the cycle lows.
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10y yield stabilising while the 2y ticks higher... very bullish for AUD