The drop from 1.0823 is either a completed A-B-C decline, is wave A of a triangle, or wave C is still underway from near 1.0140. Meanwhile, a push through 1.0081 would make the rally from .8870 an impulse and make the A-B-C labeling from the top preferred. A corrective decline would follow, which would present a bullish opportunity.
The AUDCAD has slipped below trendline support today, strongly indicating that a correction is underway. Look for initial support at .9526 (6/12 low) and then .9293 (5/14 low). Longer term, we remain bullish so these sizeable declines (expected) should be used to add to / initiate longs.
As we’ve stated for some time, the AUDNZD is headed for a test and likely a break of the 2000 high of 1.3506. We know that this is a likely scenario because the drop from 1.3506 is in 3 waves. 3 wave moves are corrective and are eventually fully retraced. The move is clearly vertical, and such moves are prone to violent corrections. If a correction does unfold, then support begins at 1.2415.
Tell us what you think about this report: contact the strategist about the article at jsaettele@dailyfx.com
TREND ANALYSIS is based on a rolling pivot model. LONG TERM TREND is determined by the last 3 months of price data (high, low, close). SHORT TERM TREND is determined by the last 4 weeks of price data (high, low, close). R3, R2, R1, PL, PH, S1, S2, and S3 are provided to aid in identifying entries and exits. These are objective measures and our subjective analysis (STRATEGY) may differ. SCHEDULE Monday: EURGBP, EURCHF, EURCAD, EURAUD, EURNZD Tuesday: EURJPY, GBPJPY, CHFJPY, CADJPY, AUDJPY, NZDJPY Wednesday: GBPCHF, GBPCAD, GBPAUD, GBPNZD Thursday: AUDCHF, AUDCAD, AUDNZD