AUDUSD: Is This the Reversal?

An AUDUSD multi-year top may be in place.

An AUDUSD multi-year top may be in place. The rally from the 2001 low is an A-B-C advance (countertrend) and wave C (from .6771) from can be counted as an ending diagonal.  One reason to favor the near term topping scenario is the short term pattern.

Quite simply, Elliott analysis is all about 5’s and 3’s.  5 wave movements are in the direction of the larger trend.  In the case of the AUDUSD, a 5 wave decline is visible (at this point) from .9541.  A corrective rally from near current levels would confirm that a top (possibly a major one) is in place at .9541.  Be sure to check the technicals next week for updates to the short term pattern.