It looks like the downtrend in AUDUSD still has room to develop, because on the 15-min chart there is a clear five-wave structure, also known as an impulse. According to the Elliott Wave Principle, every impulse is followed by a three-wave correction in the opposite direction. Then the trend is expected to resume in the direction of the five-wave sequence. The chart below shows what we are talking about.
As you can see, AUDUSD rose sharply from the bottom at 0.8650, which we think is wave “a” of an a-b-c zig-zag corrective recovery. If this is the correct count, we should expect wave “c” to the upside, before the bears return.
