AUD/USD - Wave 2 should almost be over

This is my preferred count. It has been some times since I have written about this cross, but it hasn't done much and the wave 2 correction has been more complex than expected, but that is how correction works.


One could make a good case out of this wave two being very close to its top. First of all it has corrected 61.8% of wave 1 decline and looking at the time factor it has taken almost 1,618 times the amount of days wave 1 did. Wave 1 decline for 29 days and wave 2 is now only two days from being 1,618 * 29 = 47 days.

Finally we have tested the wave iv triangle apex at 89.77, which is a common retrecement target.

Zooming in on wave 2 we can see that it has become a double correction, where the first A-B-C correction was a flat (Wave B corrected almost all of wave A) and wave C became 1.618 times the length of wave A. While the second A-B-C has become a zig-zag correction (wave B only corrected a little more that 38.2% of wave A) and wave C untill now is 61,8% the length of wave A. It's too early to exclude that wave C will be equal to wave A, but a break below 88.50 and more importantly 87.35 will be needed to confirm that the top is in place.