Chart of the day

AUDUSD is extending lower and is breaking below 0.6372. We are in the fifth wave lower short-term which could lead to a test of 0.5490.

A continuation lower and a break below 0.6190 will invalidate ultimately the reversal higher long-term and would change the Elliott Wave long-term count. The key downside resistance long-term remains 0.5490

Short trades are favored to be opened here with a stop loss above 0.6400. We prefer the short trade entries at this stage as we see an ongoing price action to continue lower after the strong resistance is broken. Long trade entries could come only upon a break above 0.6400.