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The current bearish structure on AUDUSD suggests that the cycle-degree correction might not have ended just yet. Wave c, which marks the end of the primary wave ⑤ as well, could slide further down for a fresh low below the 63c. round support (either for a false break or for an extended 5th wave).
When keeping the sharp drop in mind, a range can be expected.
Adding to that the rule of alternation (particularly for multiple degree impulse waves), the decline into intermediate wave (5) then could reinitiate following the breakout of a triangular formation.
Perhaps, this could come in as a standard or a complex zigzag too, as all we need is a longer sideways market when compared to minor wave 2.
Judging by the structure, however, it is possible than the latest decline is part of a zigzag correction. This intermediate degree alternative, of course, suggests that we’ve marked a multiyear support at the pin bar low and prices are now reversing up.
With primary wave ① completed, the cu...
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