Elliott Wave Analysis On AUDUSD And Crude OIL
Not sure when it was the last time that I have seen such a strong negative correlation between Aussie and Gold. Gold is up 1.65 while AUDUSD is 1.4% in red. However, I think that things will go back to normal; rather sooner than later, but for now we need to focus on what we see and not on what we think. That said, I will continue to expect more weakness on Aussie as decline from 0.7325 looks to be in five waves, thus an impulsive leg so more weakness should follow after any three wave bounce back to 0.7225-0.7234 resistance.
Crude oil is trading sideways for the last few weeks which looks like just another corrective price action. We are tracking wave (iv) that can be a running triangle. That's a bearish continuation pattern that can send price down into wave (v) towards $33 per barrel. Once this level is reached, we will look for a bullish turn, maybe in the first three months of 2016.
Crude OIL, 4H
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