Elliott Wave Analysis: AUDUSD Looking Quite Bullish 

audusd daily

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Elliott Wave Analysis: AUDUSD Looking Quite Bullish

AUDUSD is trading bullish since start of May, when price completed a bigger correction. We saw it as a triangle correction (visible on the daily chart). That being said, we are now observing a higher degree five-wave movement to the upside, with price specifically trading at the end of wave 4). We know that wave 4) is a correction, which means it is only temporary and may in our case search for support near the Fibonacci ratio of 38.2. That said, at the same region, we also see previous swing low of wave 4 at 0.7879 level. which can also react as a support and push prices higher. Ideally, we will see a nice breach higher from the mentioned region and a five-wave development to take place within the final wave 5).


audusd 4


audusd daily


A Triangle is a common 5-wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.

Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.


Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.



By Gregor Horvat

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