On September 2nd, we published “AUDNZD With Great Growth Potential”. However, one of the two most probable counts suggested “the pair could fall as low as 1.06, before uptrend resumes”. The only reason for this assumption was the daily chart of AUDNZD. It is given below.
As visible, AUDNZD was trading near 1.1060 back then, which means we were ready for a sell-off of at least 460 pips. If you have been following this pair, you know what happened afterwards. The next chart visualizes it for those, who have not.
On October 23rd, AUDNZD fell as low as 1.0573. Not bad at all. However, according to the Elliott Wave Principle, the pair now has an even bigger upside potential. After a little relabeling, the whole price action since the bottom at 1.0019 is taking the shape of a nice 5-3 wave cycle to the north, which means the larger trend is up. Furthermore, the corrective part of the cycle, appears to be already over near the 61.8% Fibonacci level, which is where retracements often terminate. In other words, everything is pointing up for AUDNZD. If this is the correct count, the pair should start rising steadily from now on. We should not be surprised, if the exchange rate reaches higher than 1.1430 during the months ahead.
