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Elliott Wave: AUDUSD remains vulnerable to a downtrend ahead of FOMC

After finishing the consolidation period in the Contracting Triangle (CT) wave model (daily chart) lasting more than one year (from early 2016), the AUD/USD currency pair is developing a downtrend for short term and intermediate term. With all eyes on the FOMC monetary policy announcement to establish fresh direction cues, AUDUSD is struggling to break the support level around 0.7440.

With this technical outlook, I expect the pair to follow a deeper decline in the next several trading sessions. A strong break below 0.7440 will turn bias officially to the downside and target a test on 0.7171 support zone.

It’s very difficult for AUDUSD to rebounce above 0.7609 but if that happens, bias will be turned back to the upside for 0.7755 resistance.
In the bigger picture, the long term downtrend is expected to resume for a test on the target of 0.6830.

By Jack Huyn

Please be informed that information I provide is for educational purposes only and not intended as investment advice. Information and analysis above are derived from utilising methods believed to be reliable, but I cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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