More than four years ago, we wrote that there was a “bearish omen” on the historical chart of AUDUSD. A complete Elliott Wave cycle of 5-3 Elliott Waves spanned nearly 50 years, starting in 1973, when currencies started floating freely against one another. The impulsive segment of the Elliott Wave cycle was pointed south so it made sense for us to expect more weakness. In April 2018, the AUDUSD hovered above 0.7600.
AUDUSD currently trades at 0.6800. This is a drop of over eight figures in just four and a quarter years. The pair barely remained above 0.5500 in March 2020’s Covid-19 panic. Yesterday, an EW PRO subscriber asked us about it. We thought it was high time to update the AUDUSD. Here it is.
Similar Elliott Wave setups are also found in the stock, commodity and crypto markets. You can learn how to spot them in our Elliott Wave Video Course!
AUDUSD was at its lowest level in three decades of free-floating currency rates. It fell from around 1.5000 to just below 0.4900. What is interesting is that this bear market took the shape of a five-wave impulse, marked (I)-(II)-(III)-(IV)-(V). You can also see the five sub-waves in wave (III), while wave (V is an ending diagonal). The Elliott Wave…