Talking Points:
- AUDNZD Technical Strategy: Bearish
- Elliottwave Count: Primary count suggest wave 2 in minor cycle while on alternate count suggest it's triangle in wave X
We are tracking this pair from high 1.0950 and still suggesting it's down trend. From current price, there are two possible scenario which can be played in near future and both scenario are suggesting down trend. Below are charts and it's description of them
Primary Scenario:
With primary scenario, we are expecting current upward swing can be considered as a wave 2 in minor cycle and expecting down trend after we faced channel resistance yesterday. We ware looking to see complete it's incomplete wave Y. Wave Y can be composite of double zigzag or triple zigzag correction
Second Scenario:
With second scenario, we are predicting triangle formation on wave X / wave B, and with yesterday upward swing completed it's wave E which is last swing of triangle. From that point, we are looking for impulse down move which can be counted as wave C or wave Y. If it's wave C then, we should get down with five, seven, nine wave move. And if it's wave Y then we can see double zig zag or triple zig zag move in coming days.
Action:
With both above charts, we are recommending a short position rather than long position. We already shorted this pair on 1.0930 for which stoploss is moved to 1.0940. We also initiated a new position today with same stoploss. For target, we will give more time to market to decide our exit strategy.
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