Today we will talk about Aussie (AUDUSD) + Copper and their positive correlation from the Elliott Wave perspective.
As you may already know, Copper and AUDUSD are in positive correlation, not tick by tick, but most of the time they are moving together.
Well, after recent slow down on both assets, seems like it's just a corrective phase in wave four with quite nice support on Aussie. It's trying to bounce after a three-wave corrective setback, right from ideal 38,2% Fibonacci retracement, channel support line and 100-day SMA line, which can be an indication that wave 4 is completed and it can be now on the way back to highs for wave 5.
AUDUSD, Daily
As said above, the main reason for a bullish continuation is Copper, in which we see a bullish triangle formation within wave IV. Triangle is a continuation pattern which consist of five waves A-B-C-D-E. So, once a triangle is fully finished, where wave E is still missing, we can easily expect it back to highs for the final wave V that can also push Aussie into a 5th wave.
COPPER, 4H
Comments
Log in or sign up to join the conversation.