AUDUSD – Is the pair in final leg of a running triangle corrective wave?
A larger corrective downtrend started from 1.1085 (July’11 high), appears to be still in force for AUDUSD which may be a large triangle consolidation in a range between 1.0860 and 0.9580 ( Alt- double zigzag corrective swing,
which allows for a retest of the Oct’11 swing low at 0.9390 on multi-month basis). A break below 0.9580/0.9390 deepens the correction toward 0.9145. A break above 1.0860 would expose the 1.1000/1.1085 resistance in a complex wave B.
The pair is holding well relatively amid ‘risk off’ sentiment. The wave X correction from 1.0625 may be unfolding in a running triangle pattern. The 1.0300/1.0235 support needs to hold for the wave count. Immediate term weakness could test the 1.0330/1.0300 (watch potential triangle support line) before stabilising. A break above 1.0480/1.0625 would expose the tough 1.0750/1.0860 resistance initially. A reversal below 1.0235 however
refocuses on 1.0150.