AUDUSD At Risk Of Further Downside

AUDUSD prices have recently depreciated substantially amidst a bearish impulse.

As part of an ABC correction in wave (2) (or (B)) of Ⓐ, the 5-wave move will end in the short-term.

This is due to both impulse waves (i) and (ii) having completed their structures. Now, only the (iv) is left to complete.

Regardless of whether the last wave may extend, immediate support lays at 38.2% of the retracement level of (1) (or (A)), near $0.7050.

Should prices continue to slide, bears are likely to face some bullish pressure at the said level.

If bulls hold firm, this could cause a reversal as the probabilities of the correction having ended will increase.

In case bulls give in prices could slide lower. However, a break of the 38.2% Fibonacci will open up the room to 50% and 61.8% next. These levels will get us near $0.6750 and $0.6450 respectively.

Such a scenario would suggest that the structure from wave (1) to $0.7050 might be a 5-wave impulse in A. However, A might have ended already as the extension of the minute structure completed the 161.8% of waves one and two.

Therefore, we can expect a correction in wave B, before deteriorating towards the aforementioned lower retracement levels.