Currency pairs trading bearish

October 6, 2017 09:07 AM
Elliott Wave Analysis: AUD/USD & GBP/USD

The Aussie dollar/U.S. dollar (AUD/USD) currency pair is trading in a bearish leg as part of a higher degree Wave 5. We know that wave five is an impulse, meaning it must consist out of five waves. At the moment we see only three of them fully unfolded, which means two more must show up.

That said, we see the current price rising, but only for a temporary correction within sub-wave iv of 5. Resistance is seen at a Fibonacci ratio of 38.2 and near the 0.7798 level.

AUD/USD, 1 hour

Now let’s switch to cable
Cable is looking increasingly bearish as we already highlighted this week, so we are tracking an impulsive decline in progress, currently still seen in wave three which is searching for a support, maybe after NFP, when the price may turn higher for a wave four bounce.

GBP/USD, 1 hour

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: