We know that this is a characteristic of a contra-trend price action, so trend remains bearish for now within the impulse that has been in play since mid-2014. We see the market moving sharply lower now after a broken upward channel, so wave (5) is in play for a move down to 0.7100-0.7300 area.
AUD/USD Daily Elliott Wave Analysis
On the 4hr chart, price broke above the trendline last week so we see completed five waves down. This means that upward reaction should be corrective. Corrective patterns are structured by three legs. Ideally we have seen the end of wave A followed by a wave B sell-off that can send price to 0.7850 this week to complete wave 2 rally.
AUD/USD 4hr Elliott Wave Analysis