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AUDUSD Elliott Wave Analysis Trading Lounge Day Chart, 6 February 24

Australian Dollar/U.S.Dollar (AUDUSD) Day Chart

AUDUSD Elliott Wave Technical Analysis

FUNCTION: Counter Trend

MODE: Corrective

STRUCTURE: blue wave Y of 2

POSITION: Red wave 3

DIRECTION NEXT HIGHER DEGREES: black wave 3

DETAILS: blue wave X of B looking completed at 0.66268. Now blue wave Y of B is in play and looking near to end. Wave Cancel invalid level: 0.62707

The "AUDUSD Elliott Wave Analysis Trading Lounge Day Chart" dated 6 February 24, provides a comprehensive analysis of the Australian Dollar/U.S. Dollar (AUDUSD) currency pair using Elliott Wave Technical Analysis.

The identified "FUNCTION" is "Counter Trend," indicating a focus on potential reversal or correction movements rather than riding the prevailing trend. This suggests that traders using this analysis may be exploring opportunities that go against the dominant market direction.

The specified "MODE" is "Corrective," suggesting that the current market structure is likely part of a corrective pattern rather than an impulsive trend. Corrective waves typically involve price retracements or sideways movements.

The "STRUCTURE" is defined as "Blue wave Y of 2," indicating the specific wave within the broader Elliott Wave structure. This level of detail is crucial for traders implementing Elliott Wave principles to understand the finer nuances of the market movement.

The "POSITION" is labeled as "Red wave 3," denoting the current position within the broader wave count. Red wave 3 is significant as it represents a major wave degree and is part of the larger Elliott Wave hierarchy.

In terms of "DIRECTION NEXT HIGHER DEGREES," the analysis points to "Black Wave 3." This suggests that, despite the current corrective structure, the broader expectation is for a resumption of the downtrend with the development of black wave 3.

The "DETAILS" section mentions that "blue wave X of B" is considered completed at 0.66268. Now, the market is expected to be in the early stages of "blue wave Y of B," which is described as "in play and looking near to end." This implies an anticipation of the completion of the corrective structure.

The "Wave Cancel invalid level" is specified as "0.62707." This level serves as a critical reference point, and any breach of this level may prompt a reevaluation of the current wave count and market outlook.

In summary, the AUDUSD Elliott Wave Analysis for the Day Chart on February 6, 2024, suggests a corrective structure with the expectation of completing blue wave Y of B, and traders are advised to closely monitor the market dynamics, especially the specified invalidation level at 0.62707.

Technical Analyst: Malik Awais

Source: Tradinglounge.com

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