AUDUSD Elliottwave Technical Analysis and Forecast on 1-March-2016: Down trend will resume

Talking Points:

• AUDUSD Technical Strategy: Bearish
• Elliottwave Count: Correction possible completed on 7250 high and reversal is in progress

Analysis:

We were expected correction over last month when price touched 7200 area, and shorted this pair. However, that was not correct and price climb again above 7200 area and ended with 7250. After hitting high of 7250, price retraced in last few days, and had a channel breakout. This hint us to consider reversal is in play. We had impulse down from 7250 and consider as wave 1. We are expecting flat correction from low 7120 to 7160 area before seeing another impulse leg down

Action:

With keep it mind long term fundamental weakness in AUD pair and technical bearish confirmation, we  shorted this pair last night with stoploss @ 7250. We are  targeting well below 6800 area. 

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