AUDUSD - Looking at bullish side - Awesome Risk/Reward !

We are in a higher degree wave 2 correction composed of an ABC correction.
Wave A was successfully traded to the upside and we remained on the bench for wave B down.
Wave B got a bit compilcated as it is an Expanded Flat correction (that's why it's not a good idea to trade against the trend).

We are now in the last moments of a 5 waves move down for wave ((c)) of B.

Therefore, think about closing your short positions if you have any as price should find resistance in the yellow box area (.711 - .716)

Look for bullish divergence to anticipate the end of wave (v).

*** Trade Setup ***

* Entry : Pending @ 0.711 - 0.716
* Target : 0.7475
* Stop : last low

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If alternate count is correct then If price tests and rebounds at the 0.618lvl, this might in that case be a wave X followed by a Y wave higher.

If price retraces 78% of the move, we might consider a B of a Flat wave being in play but because it's a very sharp move, it does not 'look' like a B of a Flat, which grinds more sideways usually.

Other option is we might resume the impulsive move to the downside, in wich case, price retest the last low.

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Going long at current price
Stop : 7177
Target : tbd

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Move Stop to break-even or close the trade at actual price. I think we will get one more move lower.

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Trade closed as expected.
AUD fell because of Retail Sales data in China were below expectations.

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The alt count suggests we are resuming the downside move. But I am not yet ready to short this pair. I believe we are in a complex correction and we should see price go higher again for a bit.

ElliottWaveBelgium

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ElliottWaveBelgium

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