AUDUSD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 15 February 2024

Australian Dollar/U.S.Dollar (AUDUSD) 4 Hour Chart

AUDUSD Elliott Wave Technical Analysis

FUNCTION: Counter Trend as wave 2

MODE: Corrective

STRUCTURE:Ending Diagonal as wave C

POSITION:  Red wave 3

DIRECTION NEXT HIGHER DEGREES: black wave 3

DETAILS: blue wave C of 2  is in play and looking near to end as ending diagonal diagonal.

Wave Cancel invalid level: 0.62707

The "AUDUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart" dated 15 February 24, provides a detailed exploration of the Australian Dollar/U.S. Dollar (AUDUSD) currency pair within the context of Elliott Wave theory. This analysis primarily focuses on the 4-hour timeframe, aiming to equip traders with valuable insights for navigating the market.

The identified "FUNCTION" is "Counter Trend as wave 2," indicating that the analysis is geared towards understanding a potential corrective phase within the broader market trend. Counter-trend movements often present traders with opportunities to identify reversals or continuations of the primary trend.

The specified "MODE" is "Corrective," signifying that the market is currently undergoing a corrective wave. Corrective waves are characterized by price movements that run counter to the primary trend and are essential for traders seeking to understand potential reversals or trend continuations.

The described "STRUCTURE" is an "Ending Diagonal as wave C," indicating a specific Elliott Wave pattern in play. Ending diagonals are a type of motive wave that unfolds in five overlapping waves, often signaling the termination of the larger movement.

The designated "POSITION" is "Red wave 3," specifying the current position within the Elliott Wave hierarchy. This information assists traders in understanding where the market is within the larger wave count and facilitates the identification of potential trade setups.

Concerning "DIRECTION NEXT HIGHER DEGREES," the analysis points to "black wave 3," suggesting the anticipated direction of the next higher-degree wave. This hierarchical approach aids traders in gaining a comprehensive view of potential future price movements.

In the "DETAILS" section, it is noted that "blue wave C of 2" is currently in play and is approaching its end as an ending diagonal. Additionally, a "Wave Cancel invalid level" is specified as "0.62707," providing traders with a critical reference point. This level acts as an invalidation point, and a breach could signal a shift in the anticipated wave count.

In summary, the AUDUSD Elliott Wave Analysis for the 4-hour chart on 15 February 24, suggests the presence of a corrective phase (wave 2) characterized by an ending diagonal pattern (wave C of 2). Traders are advised to closely monitor the market, especially the specified invalidation level at 0.62707, for potential shifts in market dynamics.

Technical Analyst: Malik Awais

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