There is evidence on the AUD/USD of a temporary low in place after five waves down in black wave 3. We know that a correction follows after every five waves, so we think that current sideways price action represents a wave 4 pull-back that should be sub-divided by three legs. As such, we think that the corrective, temporary rally is incomplete and that the pair may test 0.9830/0.9890 resistance area this week before new sell-off occurs.

Traders who want to join the larger trend should wait on completed wave four first and then look for short opportunities.

Forex Analysis by Gregor Horvat at ForexPros. com