AUD/USD: Correction Still In Progress
AUD/USD bounced higher recently so seems like that bears are not ready to take control just yet. On the updated chart we see wave 4) still in progress and the reason is a corrective structure from 0.7384. As such, this leg must belong to some bigger and more complex correction. Our favourite idea is a triangle so current leg up can be wave C with limited upside at 0.7200-0.7250 area. So in the short-term we may expect a turn down into wave D. Generally speaking we still think that AUD/USD will hit new lows by the year end but seems that we will have to wait longer than firstly thought.
AUD/USD 4-Hour Chart
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subpide 3-3-3-3-3.
Basic Triangle Pattern :