The pair is undergoing correction.

The formation of the “bearish” correction as the wave 2 continues. At the moment, it seems that the wave a of 2 has been formed as the impetus and locally the correction b of 2 is being formed. According to the developing wave structure of the wave 2, we can assume that correction will take a shape of the zigzag and will reach the level of 62% - 0.7737.  If this assumption is correct, after the completion of the correction 2, the pair will continue to rise to the estimated level of   0.8400. Critical level for this scenario is 0.7530. Breakdown of this level will trigger the decline in the pair to 0.7400 – 0.7300.

Trading tips

In the short-term: sell the pair from correction below the level of 0.8076 with the target of  0.7740. After the completion of the correction it is advisable to buy the pair above the level of 0.7740 with the target of 0.8400.

Alternative scenario

Breakdown and consolidation of the price below the level of 0.7737 will enable the pair to continue decline to 0.7530.

AUD/USD: wave analysis

AUD/USD: wave analysis

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