AUDUSD Elliott Wave Intraday Analysis

Aussie has reached new lows, breaking out of a fourth wave triangle into the 5th wave, as the Hang Seng index moved down into wave C, approaching the 20,000 level. Now, it will be crucial to observe the price action in Chinese shares for the rest of the week. Keep in mind, that if Chinese shares begin turning higher after this ABC drop, a recovery on Aussie dollar pair will likely follow. This also makes sense, especially considering that the five-wave decline from the end of September may be coming to an end.
 

As we know, after every five waves, the market tends to make a corrective three-leg movement.

On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.