AUD/USD delivered exactly the reaction we anticipated from the November lows, a sharp, impulsive rebound that signals the corrective decline may now be behind us. With momentum shifting, traders should prepare for the next leg higher in the weeks ahead.
Let’s take a look at a snippet from our update that we published 21st of November:
“Aussie (AUDUSD) is coming to the downside now, testing the October lows, and it looks like the higher- egree correction from the September highs is still here, but it could now be in wave C coming out of a running triangle in wave B, meaning that the downside will be limited somewhere around the 0.6350– .6400 area. Ideally we will see a nice reversal from that zone sometime in the next few weeks, and if we then get an impulsive price action on the recovery, we may finally complete this correction”
Since then, we have seen very strong and nice recovery from the forex pair, which has met our expectations. Let’s take a look at our latest update, which has been sent out to members just today, 8th of December:
“Aussie came nicely to the downside in the last few months with clearly three waves down from the highs, so apparently this was a correction, a completed one, after a very nice rebound from the 0.6420 area, from where we can now see impulsive move that broke the trendline and even coming back above the previous triangle swing resistance. This certainly looks like a turning point, and ideally it will take us even higher after some new retracement, so watch out for more upside while the market trades above the November lows”
Thank you for reading and see you on the next one!
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