AUDUSD reversed perfectly lower from 1.0380/1.0400 resistance region that we have been focusing on last week with our members. Notice that market made a very sharp fall from that level, clearly in impulsive fashion through the lower line of a corrective channel that has been tested as a resistance on Friday after the NFP report. We believe that was just a sharp corrective retracement, labeled as wave (ii) that is part of incomplete bearish cycles. With that said, we think that AUDUSD will continue lower in this week while 1.0385 holds.
Traders must also be aware of RBA rate decision tomorrow. A possible cut because of latest poor economic indicators could send AUDUSD to 1.0100 in this week.
Our Set-up Formula:
Elliott Wave Clear Pattern Set-up Formula:
Three wave rally + impulsive sell-off + channel break + pull-back reversal from resistance line = Downtrend Continuation
OUR AUDUSD VIDEO FROM 04/29:
Written by www.ew-forecast.com
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