AUD/USD: wave analysis

The pair may fall.

On the 4-hour chart, the first wave of the higher level (1) of C develops, within which the wave 1 of (1) formed, and a downward correction started to develop as the second wave 2 of (1). Now, the wave a of 2 is developing, within which a local correction has formed as the wave (ii) of a. If the assumption is correct, the pair will fall to the levels of 0.6965–0.6682. In this scenario, critical stop loss level is 0.7415.

 

Main scenario

Short positions will become relevant during the correction, below the level of 0.7415 with the targets at 0.6965–0.6682. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 0.7415 will let the pair grow to the levels of 0.7600–0.7700.