AUDUSD: Bearish Triangle Pointing Lower, Dovish RBA?

27 Mar

During the overnight Asian session, there was a release of Australian CPI data, indicating that inflation remains stable at 3.4%, which is slightly below the expected 3.5%. Consequently, we can anticipate that this news could potentially drive the Aussie lower on maybe dovish RBA, who may try to follow other dovish CBs.

From an Elliott wave perspective, we are tracking bearish pattern; its an A-B-C-D-E, possibly in already late stages. However, the ideal resistance for a wave E could still be a bit higher, around 0.6580 or so. Nevertheless, if we witness a break below 0.65, I believe that the decline could immediately resume toward the lows seen in March.
Grega