Elliott Wave Analysis: Triangle Point Lower On The AUDUSD
Elliott Wave Analysis: Triangle Point Lower On The AUDUSD
On the daily chart of AUDUSD we are observing big consolidation pattern in fourth wave which is definitely not a simple one. It’s a very complex structure that is underway for around 12 months now so we can expect a very strong breakdown once the pattern is finished. Latest substructures suggest that wave IV can be a triangle, and reason for such view is a new swing high at 0.7770 area that we labeled it as wave C-circled. So we actually have two contracting trendlines connected with swing lows and swing highs, between which wave D is now unfolding while we will have to wait on wave E for a couple more more weeks. So for now pair remains trapped in range but break to the downside is expected to occur by the end of the year.
AUDUSD, Daily
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As expected AUDUSD made a nice rally towards back above 0.7530 level after a nice higher degree three wave movement had unfolded in blue wave D-circled as part of a big triangle pattern. As such break above the previous wave 4 swing at 0.7561 could now confirm that market is in wave E-circled, final wave in the pattern that may look for a resistance this week around 0.7660.
AUDUSD, 4H
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