A decline is still possible.

A Bearish correction as wave 2 continues forming within which, assumingly, wave b of 2 is nearing the end and has taken the shape of an irregular flat. If the assumption is correct, the pair continues declining to 0.7050 within the correction. A critical for this scenario is the level of 0.6905 the breakdown of which leads to a long-term Bearish trend.

Trading tips

In the short term: sell the pair from corrections, below the level of 0.7380 with the target at 0.7050.

In the medium term: wait for correction 2 to end.

Alternative scenario

The breakdown and consolidation below the level of 0.6905 would allow the pair to continue declining to 0.6800-0.6700.

AUD/USD: wave analysis

AUD/USD: wave analysis

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