We talked about AUDUSD’s corrective structure a few weeks ago.
We provided an alternative scenario that had projected the end of the minor correction wave C. However, momentum weighed on prices more than anticipated and allowed wave C to extend to lower lows.
The current formation still hints at a flat pattern consisting of cycle degree sub-waves a-b-c.
Wave b was fully completed at the 0.6678 low, whereas wave c just began to form at the time of writing.
Wave c is likely to form a bullish impulse. It consists of primary sub-waves ①-②-③-④-⑤.
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Wave c could be completed at the 0.7033 high, where impulse wave a started.
Since the last downside move is impulsive, we should also consider an alternative scenario (as depicted above) that points to an extended primary zigzag in wave b.
This scenario projects a target of 161.8% of the primary wave Ⓐ, which hints to a deeper correction near 0.6634.
The bearish move could slide towards (5) after the successful completion of the intermediate correction (4).
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