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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: Navy Blue Wave 3
• Position: Gray Wave 1
• Next Higher Degree Direction: Navy Blue Wave 3 (Started)
• Wave Cancel Invalidation Level: 0.61862

Analysis Overview

The AUD/USD daily chart indicates a bullish trend with an impulsive wave structure. The market is currently within Navy Blue Wave 3, following the completion of Navy Blue Wave 2. This suggests that the pair is experiencing strong upward momentum as the next phase of the trend unfolds.

The current position in Gray Wave 1 marks the early stage of a larger bullish cycle. The focus now shifts to Navy Blue Wave 3, which has already begun, reinforcing the potential for continued bullish movement as the trend develops.

With Navy Blue Wave 2 confirmed as complete, price action indicates that the market is now in a strong rally phase. The invalidation level is set at 0.61862—if the price moves below this level, the current wave structure would be invalidated, requiring a reassessment of the trend.

Conclusion

The AUD/USD pair is currently in an impulsive bullish phase, with Navy Blue Wave 3 in progress. The market remains within Gray Wave 1, marking the start of a larger upward movement. Traders should carefully monitor key price levels and wave structure confirmations to validate the strength of the trend.

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

AUDUSD Elliott Wave Technical Analysis

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange Wave 1
• Position: Navy Blue Wave 3
• Next Lower Degree Direction: Orange Wave 2
• Wave Cancel Invalidation Level: 0.61862

Analysis Overview

The AUD/USD Elliott Wave Analysis for the 4-hour chart highlights a bullish trend, with the market currently in impulsive mode. The wave structure is identified as Orange Wave 1, which is part of a larger upward movement within Navy Blue Wave 3. This suggests that the market is in a strong upward phase, characteristic of an impulsive wave structure. The next lower-degree movement expected is Orange Wave 2, which is likely to follow the completion of Orange Wave 1.

The analysis indicates that Navy Blue Wave 2 appears to have ended, and the market is now progressing through Orange Wave 1 of 3. This wave is expected to show strong upward momentum, in line with the impulsive nature of the trend. Traders should monitor the development of Orange Wave 1, as its completion could signal the potential start of Orange Wave 2, a corrective phase that may bring temporary pullbacks or consolidation before the trend resumes.

A critical level to watch is the wave cancellation invalidation level at 0.61862. If the price falls below this level, it would invalidate the current wave count, requiring a reassessment of the market structure. This level serves as a key support zone, and a break below it could indicate a potential shift in the trend or wave pattern.

Conclusion

The AUD/USD pair remains in a bullish trend, with Orange Wave 1 currently in play following the completion of Navy Blue Wave 2. This impulsive movement is part of Navy Blue Wave 3, with the next expected phase being Orange Wave 2. Traders should closely monitor the completion of Orange Wave 1, as it will provide insights into the timing and direction of the next lower-degree wave. Understanding wave structures is crucial for anticipating potential market movements and aligning trading strategies accordingly.

Technical Analyst: Malik Awais

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