AUDCAD - From last week, “a correction is unfolding following the 5 wave rally from .8123-.9519. We do not know what type of correction is unfolding but since this correction is a larger second wave, it is likely that the correction will be sharp. As such, the decline from .9519 is most likely just the first leg of a correction (A-B-C). Fibonacci resistance begins at the 38.2% of .9524-.9016 and stretches to the 61.8% at .9329. We are looking for this rally to extend into Fibo resistance before a C wave decline drawn price under .9020.” The pair pushed to .9290 in what is likely the B wave top. Weakness from there is wave C, which should come under .9020. Wave C would equal wave A (possible a significant bottom) at .8789.
AUDJPY - Last week?s analysis stated that “a triangle seems to be forming in the 4th of the 3rd wave position. As such, we are looking for a thrust higher from the triangle (above 100.06).” That thrust has occurred and it appears as though the larger 4th wave correction is beginning today. We are looking for the pair to come down towards support at 97.44. Divergence with daily RSI favors a turn.
AUDNZD - It looks like a triangle is forming and has been since the beginning of the year. The break from the triangle will likely be to the downside since the trend preceding the triangle was down. Triangles often consist of 5 waves so we are looking for some more consolidation within the triangle before a break lower.