The AUDUSD currency pair fell by more than 100 pips during the last two days. This forecast suggests that the weakness is not over. Traders may benefit from reading it.
The important thing, when making an Elliott Wave analysis, is to start from the correct top or bottom. If you are going to count a downside move, you have to start counting from the last major top. AUD USD offers a good example right now. In this case, the top to start from is 0.9504.
The first sharp move to the downside should be counted as an impulse, so we label it wave A. After every impulse there should be a three-wave correction in the opposite direction. Wave B fulfills this condition. Then there is wave C from 0.9475 to 0.9275 to the downside. The whole decline from 0.9504 to 0.9275 is a typical A-B-C zig-zag correction. The uptrend could have resumed from the bottom of wave C. Instead of this, AUD USD made only a small a-b-c rally, followed by another a-b-c down to a new bottom at 0.9236. These two three-wave sequences are labeled A and B. Wave C to the upside takes the form of an ending diagonal, which completes the expanding flat correction in wave (X). So, having an A-B-C for (W) and an A-B-C for (X), we should expect another zig-zag in wave (Y) to the south. The sharp sell-off during the last two days is supposed to be wave A of (Y). If this is the correct count, waves B and C of (Y) remain.
