AUDUSD: Keeping The BIG Picture In Mind!

AUDUSD: Now In A Strong Downtrend...But Don't Forget It's Still A Correction!

AUDUSD has been seemingly falling strongly in a new strong downtrend and it is. But is this the resumption of the MAJOR overall downtrend? In order to understand why it is falling and figure out where it could possibly end, we must understand the BIG picture of what is happening in AUDUSD. For that, let's go to the charts....

WEEKLY CHART

From June, 2014 until Jan, 2016, we saw AUDUSD fall over +2600 pips. From my Weekly chart of AUDUSD you see here, I have labeled that drop a completed wave (3). To understand why I see it as a wave (3), you'd have to see my Monthly wave count. Well, if that is the correct count, then what we are seeing now is the wave (4) correction. And what we know about corrections is that more often than not, they are quite complex! And they are made up of 3 waves. Waves A and C of any correction are impulsive waves themselves. But the wave B is itself a complex corrective wave made up of 3 waves also! Also made up of 3 waves. Two impulsive and one corrective! Why am I explaining this? Because following this logic, it's easy to see what is happening right now! It is now falling inside the wave C of the larger wave (B) correction! And what do we know about wave C's? They are the corrective wave equivalent of the wave 3 in an impulsive wave! They are usually STRONG moves! And that is what we have here.

There is also a POTENTIAL Bat that is in play here with that wave C of (B) being also the CD leg of this Bat. What that indicates is that likely we are going to see MUCH MORE downside to go yet in this drop. Very likely low enough to fill this Bat.

BREAKING DOWN THE TRADE

In the main Daily chart above, you can see clearly what I just talked about above about the Weekly chart. In the SHORT trade my members and I are in now that we are already in profit of over +350 pips and looking for MUCH MORE! I issued the trade call knowing what my wave count was calling for to happen. When it was confirmed by the wave B top, I waited for a SELL confirmation and took the SELL trade. That is how you PROPERLY use wave count + structure + price action to locate good, profitable trades! If you can see what I see, it's not so hard to spot them! Study my charts and see if you can see it! Then you may start trading PROFITABLY as well!

Comment:

We're now up over +460 pips on this trade. Dropped another +100 pips since I posted this. But now it is due for a retrace. Overall it is STILL bearish but some pullback is expected: