Today we will talk about Aussie(AUD/USD), its price action from a technical point of view, and wave structure from Elliott Wave perspective.

Aussie is making an extended rise from November lows, which we see it in the final stages of wave 3, so after a pullback in wave 4 with support in the 0.7450 – 0-7370 area, be aware of another jump into new highs to complete a five-wave cycle that can stop around 0.76 area.

AUD/USD,4H

The main reason Aussie can see limited gains is a negative correlated USD/CNH chart, where we see a potential ending diagonal (wedge pattern) in progress. China has a big impact on Australia due to exports, so once USD/CNH completes its wegde pattern, this is when Aussie may find the top for the 5th wave.

USD/CNH, 4H