Bulls Pushing AUDUSD Into a Bullish Cycle, while S&P500 Trading in A Correction – Elliott wave Analysis
Aussie can be trading in a three-wave recovery from the lows, with current rally from the 0.719 level representing sub-wave 1 as part of a bigger leg C). Leg C) is a motive wave, meaning it is structured by five-waves, so more gains may be expected. Also know that nothing moves in straight lines, so pair may face temporary corrections, with wave 2 being the next one.
That said, resistance and a possible top for wave C) can be around the 0.750/0.754 area.
S&P500 is trading in a bigger correction, with current rally from the 2625 area representing leg C) as part of a flat of a wave B. That said wave C) is a motive wave, so it must unfold five-waves before it can be regarded as completed. Resistance and a reversal for wave C) can be near the 2850/2870 region.
A later drop in five waves would confirm a top in place and more weakness
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