How low can the AUD/USD go. It has relentlessly sold off the past week ever since interest rates were lowered in the land down under. And, finally, I may be able to afford a vacation there as I expect using Elliottwave analysis.
First, corrections in markets are hard to analyze and can be very confusing. So the trick is to first spot a trading range and place support / resistance lines as a I did.
Second, as an Elliottwave practitioner I am always on the lookout for fractals. Here we can see that the small trading range of the Aussie reflects the overall trading range as a whole.
So right away we have expectations that the Aussie will rally, eventually, over 1.0000 but not before it sells off to the mid 0.97 area.
The ultimate target which will be wave 3 and the most fun part of any good movement will lead the Aussie to the 0.8330 level which is 1.618 extension of the range between the uptrend ending wave 5 to the newly appointed wave 1.
Always remember to use Elliottwave analysis appropriately and not get overly confused start with uptrend lines, channels and support/resistance.
