If 1.0823 holds, then the count in black is valid. That count indicates that the AUDCHF is in wave C of a large correction that will eventually come under .8882. However, with price so close to breaching 1.0823, we are presenting the alternate (in red); which suggests that the advance from .8882 is wave B of a triangle.
We wanted to show a bigger picture view of the AUDCAD this week. The monthly chart shows that an inverse head and shoulders (a triple bottom of sorts) has been forming since 1986. The neckline of the pattern is not until close to 1.02. Short term, the advance is extended and a pullback to at least the .9300 region is expected in the coming weeks.
A price extreme for wave 4 may be in place at 1.2121 but expect the consolidation to continue. Triangles are common 4th wave structures and if one is unfolding now then consolidation will likely last for at least a few more weeks.
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
Australian Dollar Crosses Consolidate
Linear Mode
