AUDUSD is dropping like a rock at the start of the US session, suggesting that a higher degree wave 4 correction had ended with an ending diagonal in its final wave c. In such case, we expect now to see a drop at least in three-waves, where a break below the 0.7100 level would confirm even more weakness for the pair. Also a drop out of an ending diagonal can indicate price to reach the starting point of the pattern, which is in our case at the 0.7040 region or maybe even lower!However, even if goes more complex here, we remain bearish as long as it's trading beneath 0.7200 invalidation level.
Note
UPDATE: Because of only three waves of retracement from the highs down to 0.7089 we see Aussie still recovering but in a more complex structure. It can be double zigzag head into 0.7180 area. Not interested in shorts ath this stage. Just wathcing and interested to see how pair will unfold next week.
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