AUD/USD is trading bearish since the end of January of 2018 when a bigger correction had ended.

We labeled a five-wave higher degree move, which can now be in final stages as we see price unfolding a final wave 5 of a bigger, bearish cycle. Wave 5 is an impulse (a five-legged move), so before a low can be seen, we still need to see five waves. At the moment price can be trading in a sub-wave 4) correction, which is approaching possible resistance at the Fib. the ratio of 38.2 (0.62/0.63 region), where new bears may show up.

AUD/USD, daily

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On the lower time frame of Aussie, we have a better look at the price action, and the correction of sub-wave 4). We see a three-wave rally unraveling, and approaching possible resistance at Fib. ratio of 38.2 (0.61 area), where former swing high of a lesser degree wave iv is also located. Both can react as resistance, and push price into a new decline for a fifth wave. Also, the c wave can be an Elliott wave ending diagonal in which case, a sharp turn lower can be expected once completed.

AUD/USD, 4h

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