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AUDUSD: Correction Within Downtrend

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May 27 2013

On AUDUSD we see evidences of a temporary low in place after five waves down in black wave 3. We know that after every five waves correction follow, so we think that current sideways price action represents wave 4 pull-back that should be sub-divided by three legs. As such, we think that corrective, temporary rally is incomplete and that pair may test 0.9830/0.9890 resistance area in this week before new sell-off occurs.

Traders, who want to join the larger trend should wait on completed wave four first and then look for short opportunities.