AUDUSD made a five-wave decline from 2011 highs, now completed at the 0.550 level because of a sharp recovery out of a downward channel which is strong evidence of a reversal. This reversal is bullish now and should unfold in three waves, so be aware of more upside after a pullback.

On the daily chart, AUDUSD has been very bullish since March 2021, but then it turned down for a deep pullback with some sharp leg down so retracement is deeper and longer in time, but still, a three-wave move from the high which looks like a perfect A-B-C retracement with wave C of B) bounce now away from some strong support. However, we still need to rally back to 0.7520 to confirm a bullish continuation.

Looking into the 4h chart, AUDUSD is coming even lower, now testing the 78.6% Fibonacci level which is a final Fibonacci level for a potential bounce. There is still a chance for bullish price action from here, but the pair would have to see then a bullish close for the week, somewhere above 0.7311. Until that resistance holds, there is also still valid a bearish interpretation after completed wave four near 0.7490.