AUDUSD - BEARISH SHORT AND INTERMEDIATE TERMIn my last published chart of AUDUSD. I suggested that this pair was in progress for developing bearish contracting triangle referred to as 3-3-3-3-3. See the link below for details.
However, that formation is now suspect as price has continued to grind higher. Whilst this does not change the overall expectation for this pairs to continue in bearish cycle, it seem another formation is in progress. one which I think is better than triangle in that unlike triangle the triangle which are very choppy and spends lot of time relatively speaking for completion this one spends less time in revolving and hence could form retracement top sooner.
So rather than just post an updated snapshot, I though it would be better to re-publish the chart both to avoid confusion and as the pattern is different it could offer another opportunity to learn.
So in short instead of triangle we have ABC zigzag with wave C being an ending diagonal. See schematic diagram on the chart.
Once this completes it will have strong decline hence another opportunity to consider possible short with clearly defined risk.
This might also fit in with the fact that RBA is making comment like they think AUD is over valued and speculation that they might cut interest rate in the coming scheduled review.
Potential downside could be around 0.75 zone (See weekly chart below).
As always, do your own analysis for your trade requirement.
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Thank you for taking the time to read my analysis.
DanV
danv-charting.com
