Elliott Wave Analysis: Triangle Correction On the AUDUSD Indicates Stronger Prices To Follow
On the 1H chart of AUDUSD, we are looking at a triangle correction of a higher degree with price specifically trading in the final sub-wave E of this complex correction. So far, we have seen the mentioned wave E unfolded its first two minor waves, blue waves a and b, so current intraday drop may be the final blue wave c, which can see limited downside around the 61.8 Fibonacci ratio. That said, a five wave move to the upside and above the 0.7606 level would indicate a completed correction and higher level to follow.
Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.
A basic triangle patter:
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