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

AUDUSD Elliott Wave Technical Analysis

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange wave 1
• Position: Navy blue wave 1
• Direction Next Lower Degrees: Orange wave 2
• Invalidation Level: 0.60869

Details:

The AUDUSD daily chart shows a bullish trend with an impulsive wave structure currently unfolding. The market is in orange wave 1, which is part of the broader navy blue wave 1. This indicates the beginning of a new trend, with upward momentum driving price action.

The presence of orange wave 1 within navy blue wave 1 suggests the early phase of a larger bullish wave cycle. Strong buying pressure is evident, increasing the potential for gains in the Australian Dollar against the U.S. Dollar. The conclusion of previous corrective phases has provided a foundation for continued upward movement.

The next expected move is orange wave 2, which will follow the completion of the current wave. This phase may bring a corrective pullback before the market resumes its uptrend. However, the primary trend remains bullish.

The key invalidation level for this wave structure is 0.60869. A drop below this level could invalidate the current bullish outlook. As long as prices remain above this level, the uptrend remains intact with further upside potential.

Summary:

The AUDUSD daily chart signals a strong bullish trend, with orange wave 1 of navy blue wave 1 currently active, confirming the start of a new upward movement. The invalidation level to monitor is 0.60869, ensuring that the bullish scenario remains valid as long as prices stay above this level. The next stage in the wave structure is orange wave 2, which may introduce a temporary correction before the uptrend resumes.

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

AUDUSD Elliott Wave Technical Analysis

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Gray wave 3
• Position: Orange wave 1
• Direction Next Higher Degrees: Gray wave 3 (started)
• Invalidation Level: 0.60869

Details:

The AUDUSD 4-hour chart confirms a bullish trend with an impulsive wave structure currently in progress. The market has entered gray wave 3, following the completion of gray wave 2 within orange wave 1. This development strengthens the continuation of upward momentum in price movement.

The completion of gray wave 2 marks the end of a corrective phase, leading to the start of a new impulsive move. Gray wave 3 is now active, representing a strong upward trend that typically suggests sustained buying pressure and potential price increases.

The next higher degree wave remains in alignment with gray wave 3, reinforcing the overall bullish outlook. This wave structure indicates that the market is in the early phase of an extended uptrend, suggesting further strength in the Australian Dollar against the U.S. Dollar.

The key invalidation level for this wave structure is 0.60869. If the price falls below this level, the bullish outlook may need reconsideration. However, as long as the price remains above this level, the bullish trend remains valid, with further gains expected.

Summary:

The AUDUSD 4-hour chart reflects a strong bullish trend, with gray wave 3 now in play after the completion of gray wave 2. This setup supports the continuation of upward momentum. The key invalidation level to monitor is 0.60869, ensuring that the bullish scenario stays intact as long as prices remain above this level.

Technical Analyst : Malik Awais

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