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Guest Commentary: AUD/USD Showing an Impulsive Decline

Eric Morera

"Pair is showing a 5 wave impulsive drop from 1.0582 peak. Decline is lacking momentum as every new low is coming with divergence in RSI which adds further conviction to our impulsive decline view. Short-term key pivot is 1.0307, while below this level some more weakness toward 1.0205 can't be ruled out to complete a cycle from 1.0582. Rally through 1.0307 would suggest this cycle has already ended and would shift focus on 1.0406 - 1.0450 region from where pair would have scope to turn lower for further losses. ALT view is that of a FLAT from 1.0397 peak which would result in new highs above 1.0582 peak so Elliott wave hedging is calling for a bounce toward 1.0406 - 1.0450 region at least." Eric Morera, Elliottwave-Forecast.com

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