AUDUSD Forecast (3 Dec 2010)

In my previous post, I mentioned that AUDUSD appeared to be making a downward move in an expanded diagonal.  After dropping past 0.9544 previous low (counted as wave 5 of the diagonal) the pair made a quick advance upwards.

This is a beautiful trade for those who made an entry upon the break of the upper trend line.

The markets appear to have made an ABC move upwards, with a (running?) triangle for wave B.  Wave C wave is almost equals to wave A, in fact slightly longer, and may indicate the end of the advance. 

Looking at the 5min Chart it appears that a 5 wave advance had been completed as well.  I’d monitor the down move more closely to see if it will continue is downward move.

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AUDUSD Forecast (1 Dec 2010)

Did a wave count for AUDUSD.  Looks like it is completing its final move down with an expanding Diagonal coupled with a MACD Divergence.  Keeping track of this pair’s movement to see how it plays out.