The Aussie Dollar - now at 1.027 - could stage a limited rally before finally heading South by starting a major downtrend.
The AUD completed all 5 major waves up. Then it started a major downtrend with the completion of wave "a" down of a very minor grade.
Now, there should be a correction upwards to the resistances at 1.034-1.0365 or even 1.039 - to be labelled wave "b" (of a minor grade) - followed by a major downtrend.
Note: the above targets could be the perfect Entry Point for a great short, provided that you wait for the complete development of 3 waves up (two-step-pattern).
At the top of the two-step-pattern there should be a clear reversal candlestick.
Finally, please use the "wave oscillator" (see below) plotted in the 1-hour chart - or lower - before entering the new trade.
SHORT RANGE TARGET: wave "b" to 1.034-1.0367 or even 1.039.
MEDIUM RANGE TARGET: 0.939 and 0.88.
THE WAVE OSCILLATOR
The wave oscillator in the 4-hour chart below shows that the new little retracement up is already started.
HOW THE OSCILLATOR WORKS
The red and grey lines swapped positions as soon as the new uptrend started: the red lines - which run inside in case of downtrend - moved outside and the grey lines moved inside, showing a new uptrend.
This is a confirmation of the new retracement up (wave "b").
Also, note the completion of the last 5 waves down.