Is now the time to be buying AUDUSD?
I have been working the idea of an impulse wave (5 wave decline) from the Jan 2018 highs; the recent sideways rice action is reminiscent of a possible triangle. For those readers that have some knowledge of Elliott Wave you may well know that triangles are very common in the 4th wave position of an impulse wave. So new lows are still favored for a 5th wave, ideally we see a test of 0.7250, but any new low would suffice.
Barring a big move above 0.7600, allow for new lows for wave [v], its then traders can turn far more bullish and look for a significant low to be put in and setup for a large rally to correct the decline from the Jan 2018 highs (0.8134).
DXY vs AUDUSD
Whilst AUDUSD is not part of the DXY, the correlation between the two markets is decent enough to warrant watching. I suspect a low on AUDUSD will be accompanied by a top on the DXY. So as the DXY ends an impulse wave from the 2018 lows, the AUDUSD ends an impulse wave from the 2018 highs.
In summary, I believe its time to consider looking to buy assets or markets that will rally as the US dollar (DXY) reverses and moves lower as the current trends from the start of 2018 are setting up to reverse. Readers can chose between a number of markets, but buying either AUDUSD or EURUSD once their respective patterns are complete, are two markets that readers could participate in.
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