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 after wave (c) ends. A critical for this scenario is the level of 0.7380 after the breakout of which a growth in the pair would continue.

Trading tips

Sell the pair below the level of 0.7380 with the target at 0.7054.

Alternative scenario

The breakout and consolidation above the level of 0.7380 would allow the pair to continue growing to 0.7500-0.7600.

AUD/USD: wave analysis

AUD/USD: wave analysis

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