Both AUDUSD and Hang Seng Turning Bearish – Elliott wave analysis
Nov 29 2019
Good morning traders,
AUDUSD made a five-wave move to the downside from 0.693 area where a former corrective wave b found a top. This drop in five waves, and the break below the trendline connected from 0.667 low is now a suggestion that the trend is turning bearish, and that further downside may be seen, especially once the corrective wave ii) with its three legs fully shows up. That said, at the moment we are tracking final stages of a minor Elliott wave ending diagonal within a fifth wave in leg i), which can once completed push price into a sharp corrective a-b-c recovery; potential resistance for the wave ii) can be near the 0.684 region.
Hang Seng Index and Aussie are in a positive correlation, meaning if one goes lower, the other one will follow.
On the daily chart of Hang Seng Index, we see a clear, completed corrective pattern from August 2019 lows, which is now being followed by a sharp decline that can unfold in five waves. Also keep a closer look at the lower trendline, which is connected from August lows; once it gets breached, that is when further downside may be seen, not only on Hang Seng, but also on aussie.
Below we also shared a VIDEO analysis where Grega gives further outlook on the market.
The EW-Forecast team
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