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    AUD/USD: zig-zag may be nearing completion

    The pair is in a long-term down-trend as a result of the impact of falling commodities and a slow-down in the Chinese economy.

    The most recent move, illustrated on the chart below is a bearish 3-wave ‘measured move’ pattern or large zig-zag. The C leg of the move is now between 61.8% and 100.0% of the length of the A wave.

    Given the pair is in the zone where the measured move may well end and there is a heightened chance of a bullish recovery. Unfortunately this plays against expectations the dominant trend will extend lower.

    Therefore, is too risky to advise a sell at this point even the dominant trend would normally be expected to continue lower.
    AUDUSD23

    The pair is in a long-term down-trend as a result of the impact of falling commodities and a slow-down in the Chinese economy.

    The most recent move, illustrated on the chart below is a bearish 3-wave ‘measured move’ pattern or large zig-zag. The C leg of the move is now between 61.8% and 100.0% of the length of the A wave.

    Given the pair is in the zone where the measured move may well end and there is a heightened chance of a bullish recovery. Unfortunately this plays against expectations the dominant trend will extend lower.

    Therefore, is too risky to advise a sell at this point even the dominant trend would normally be expected to continue lower.
    AUDUSD23


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