AUDUSD Elliott Wave Analysis – Trading Lounge

Australian Dollar/U.S. Dollar (AUDUSD) Day Chart
AUDUSD Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange wave 3
POSITION: Navy blue wave 1
DIRECTION NEXT LOWER DEGREES: Orange wave 4
DETAILS: Orange wave 2 appears complete; orange wave 3 is currently active.
Wave Cancel/Invalidation Level: 0.59150

The daily chart analysis of the Australian Dollar versus the US Dollar shows a bullish trend underpinned by impulsive price action. The current wave structure indicates that orange wave three is developing within a broader bullish trend, labeled as navy blue wave one. This follows the likely completion of orange wave two, signaling the initiation of the third wave, which is typically the strongest in Elliott Wave sequences. The chart suggests that the AUDUSD pair is in an active upward phase with continued bullish momentum.

Following this, the next movement anticipated is orange wave four, a corrective wave expected after the completion of wave three. The confirmation of orange wave two’s end marks the start of a fresh impulsive move higher. A key technical invalidation level is identified at 0.59150. Any price movement below this threshold would negate the current bullish outlook, possibly indicating a deeper correction or trend reversal.

The impulsive wave structure indicates strong buying activity is currently influencing the market. Traders are advised to observe wave three’s progress closely to anticipate the onset of wave four. This daily timeframe analysis gives vital insight into the pair’s position in the larger bullish cycle, and supports the view that upward potential is still present before the next expected correction.

Australian Dollar/U.S. Dollar (AUDUSD) 4 Hour Chart
AUDUSD Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange wave 3
POSITION: Navy blue wave 1
DIRECTION NEXT HIGHER DEGREES: Orange wave 3 (in progress)
DETAILS: Orange wave 2 appears complete; orange wave 3 is now active.
Wave Cancel/Invalidation Level: 0.59150

The 4-hour chart of the Australian Dollar versus the US Dollar indicates a bullish trend supported by impulsive price movement. Current analysis shows orange wave three developing inside a broader bullish trend structure marked as navy blue wave one. This pattern implies that orange wave two has ended, and the price action has transitioned into orange wave three, which is generally the most powerful phase of an impulsive cycle. The market appears to be in the early stages of this bullish leg.

Looking ahead, the forecast anticipates a continuation of orange wave three, which would reinforce the prevailing bullish bias. The end of orange wave two confirms that the corrective movement is complete, supporting the continuation of the upward trend. An invalidation level at 0.59150 is crucial; a break below this point would invalidate the current wave count and possibly indicate a more complex correction or trend reversal.

The impulsive structure of the current move signals strong buying interest pushing prices higher. Traders are encouraged to follow the development of orange wave three for signs of ongoing bullish momentum, while also being vigilant about the invalidation level. This structured wave analysis helps clarify the AUDUSD pair's position within its broader bullish cycle, with orange wave three potentially delivering further gains before the next corrective move.

Technical Analyst: Malik Awais

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