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Tuesday, November 22, 2011

AUD/USD - Headed for important support

It has been a while (http://theelliottwavesufer.blogspot.com/2011/10/audusd-is-big-decline-in-cards.html) since I have looked at the AUD/USD pair. My view is the same as then. Since early 2001 we have seen a major double Zig-Zag correction to 110.80 in 2011. Looking at the internal relationship between the two Zig-Zag's they are exactly equal in length.
We might of cause be looking at a triple Zig-Zag, but if this is the case we still a much deeper "X" wave to develop first.
The first natural target is support at 93.86 and a break here will confirm a decline towards the bottom of wave B2 at 80.73. But I think a more likely target will be the rising red support line, which currently is at 64.89.

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