Aussie:Elliott Wave Structure Suggests More Downside After Rally
The RBA stands out with a potentially different approach compared to other central banks, as inflation in Autralia remains relatively high, making rate cuts this week less likely. This could support a rally in the Aussie, which aligns with the Elliott Wave pattern showing wave A in its final stages, with a strong five wave sell-off from September highs.
A bounce could develop then, especially if the HSI remains stable or even moves higher this week.
However, once the Aussie shows a solid recovery, be awre for a potential resumption of the downtrend, ideally from around 0.67 resistance; from the area of a former wave four. For those trading this pair, it’s worth waiting for a bounce before entering on the short-side.
Grega
A bounce could develop then, especially if the HSI remains stable or even moves higher this week.
However, once the Aussie shows a solid recovery, be awre for a potential resumption of the downtrend, ideally from around 0.67 resistance; from the area of a former wave four. For those trading this pair, it’s worth waiting for a bounce before entering on the short-side.
Grega
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