-EURUSD 1.31 in sight
-GBPUSD triangle underway to 1.40
-NZDUSD rolls over from overbought condition
-USDJPY tests Fibonacci resistance
-USDCAD bullish above 1.22
I wrote yesterday that “the rally from 1.3111 is in 3 waves, although wave C is extended. In order to stay bearish, the EURUSD needs to decline now. A drop below 1.3350 would instill confidence in the bearish count.” The bearish count is playing out. At this point, price should remain below 1.3586. The decline from that point is not an impulse (5 waves) yet but is unfolding in such a manner.
Price action since 1.35 is a 4th wave that will end as either a triangle or flat. IF a triangle is underway, then wave D is working lower towards 1.40 now. Near term, there is resistance above 1.4775. A rally above that level could complete a small expanded flat.
At this point, it is simply a wait and see game for the AUDUSD. The longer term downtrend is expected to resume soon. What is unclear is whether or not weakness resumes before a push above .7275. A push there .7275 could complete a complex correction from .60. Either way, I am looking to go short.
