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Elliott Forecast For AUDUSD: Correction Could Be Near Completion

|Includes:PIMCO Australia Bond Index ETF (AUD)

AUDUSD is in a bearish reversal mode since last Friday when market completed a five wave recovery at 0.9528. As such, the contra-trend reaction has unfolded in three waves which has been expected as this is the minimum substructure of a corrective movement. Notice that now we have three waves down, with wave C trading at the area of a previous fourth wave. We can also see a decreasing momentum in this wave C based on reading on the Force index indicator. With that in mind reversal higher may follow soon, but it will be confirmed only if price reverses back to 0.9456 level. Nice technical support for wave C comes in at 0.9280.

(click to enlarge)Click to enlarge

Stocks: AUD