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AUDJPY Elliott Wave Analysis Trading Lounge 4 Hour Chart, 21 August 2023

Australian Dollar / Japanese Yen(AUDJPY) 4 Hour Chart

AUDJPY Elliott Wave Technical Analysis

Function: Counter Trend

Mode: impulsive

Structure: 3 of red wave 3

Position: Red wave 3 of C

Direction Next lower Degrees: wave (3 of 3) of Motive continue

Details: corrective wave 2   looking completed between fib level 6.180 to 78.60. Now Wave 3 of 3 in play  Wave Cancel invalid level:94.971

The AUDJPY Elliott Wave analysis for 21 August 23, centers on the 4-hour chart, providing insights into a counter-trend impulsive movement within the context of red wave 3. This analysis is crucial for traders seeking to capitalize on short-term price fluctuations and make informed trading decisions.

Counter-trend impulsive movements are notable for their potential to generate significant price shifts that oppose the prevailing market trend. Recognizing and interpreting these movements can enable traders to seize opportunities during periods of market volatility.

The focus of this analysis lies on the 3rd wave of red wave 3, represented by the position of red wave 3 of C. This phase indicates an impulsive movement, characterized by substantial price changes, and is essential for traders looking to identify potential short-term trading opportunities.

The analysis emphasizes the completion of corrective wave 2, which likely concluded within the fib level range of 61.80 to 78.60. This completion marks a crucial transition from a retracement phase to a new impulsive phase.

Traders should closely monitor the ongoing development of Wave 3 of 3, currently in progress. This wave signifies continued impulsive behavior, suggesting further price movements in the same direction. Staying informed about these developments can help traders design effective trading strategies to maximize short-term opportunities.

Additionally, the analysis highlights the Wave Cancel invalid level at 94.971, a critical threshold that traders should take into account. Breaching this level might prompt traders to reconsider the current wave analysis and adjust their trading strategies and risk management practices accordingly.

To conclude, the AUDJPY Elliott Wave analysis for 21 August 23, underscores the significance of counter-trend impulsive movements and their role within red wave 3. By interpreting these patterns, traders can navigate short-term market fluctuations, seize opportunities during impulsive phases, and make well-informed trading decisions. While the analysis offers valuable insights, traders should complement it with other market data, fundamental analysis, and sentiment indicators to ensure a comprehensive trading approach.

Analyst: Malik Awais

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