AUDUSD bounced higher this week to 0.7150 so seems like that bears are not ready to take control just yet. On the updated chart we see wave 4) no still in progress and the reason is a corrective structure from 0.7384. As such, this leg must belong to some bigger and more complex pattern. Our favorite idea is a triangle so current leg up can be wave C with limited upside around 0.7200-0.7250. Generally speaking we still think that AUDUSD will hit new lows by the year end but seems that we will have to wait longer than firstly thought.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D.Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
Basic Triangle Pattern :