Hi, this an update to the idea: Why AUDUSD is Likely to Trade Lower Since the idea was posted, price has consolidated retraced to as high as 0.8850. At time of writing, price is trading at 0.8710s and is showing intention to breakout on the downside, forming the Wave 3 (strongest wave) of an Elliott 5 Wave Pattern. In short, price action indicates that it is...
Why AUDUSD is Likely to Trade Lower We observed from Feb 2009 to May 2012, AUDUSD has been trading along an uptrend line. This line was broken on May 2012, indicating that the bullish trend was over and we see that price has transition into a sideways consolidation between 0.9500s and 1.0830s for a while. This sideways phase was over when price broke below...
Around .8720, may be a good place to enter short / re-enter. This fan from the 2011 Highs has some interesting touches but the 50% line has acted more often as support thus far. On the other hand, if this 50% line is broken it would become a good short target as the pair descends.