As you can see, we have pulled up a AUD/USD Daily chart. We can see a nice top back in July/August and a nice, trending movement downward.
We have labelled the charts with our count of this momement. You can see wave “B” tested the bottom (labelled “3″) but did not break it.
Watch the current daily candle to close above the trend line to ensure its not a false breakout. If it holds above the trend line, watch for the current movement to remain somewhat bullish as we finish off the C wave and then continue back down for Wave 5.
Again, be sure to use your stops as we move closer to the holidays. Low volumes may create erratic and unexpected movements so don’t get caught off guard.
Good luck and if we hope everyone has a happy and restful weekend.