AUDUSD – Wave Four Correction In FocusAustralian Dollar/US DollarSAXO:AUDUSDew-forecastAUDUSD has reversed sharply to the downside into the end of the week, with price action increasingly driven by broad-based US dollar strength. The recent shift in momentum suggests that the prior upside move was temporary, with sellers now regaining control. From an Elliott Wave perspective, the internal structure supports this bearish turn. The recovery from the 0.6947 low unfolded in three waves, indicating that the move was corrective rather than impulsive. This strongly suggests it was a wave B, rather than the start of a sustained bullish trend. The brief push to new highs now appears to have been a false breakout, followed by a sharp reversal lower. This type of price action fits well with the idea of an irregular correction, where wave B exceeds the origin of wave A before the market resumes to the downside. As a result, the broader structure may still be developing as a wave four correction, but one that is more complex than initially expected. If this scenario plays out, the correction could take the form of a triangle or a flat pattern. In either case, attention should be placed on potential support zones that may come into play once the structure matures—particularly after a possible wave E in a triangle scenario. Key levels to watch include the previous wave A swing low around 0.6947, followed by the 0.6900 psychological level. This area is further supported by the presence of a prior wave four of a lesser degree, making it a technically significant support zone. Despite the current downside pressure, this zone could attract buyers and stabilize price action, potentially still within this month. From a fundamental perspective, a relatively hawkish stance from the Reserve Bank of Australia due to persistent inflation concerns could continue to support the Australian dollar and help maintain the broader uptrend once this corrective phase is complete.