AUDUSD Elliott Wave Analysis – Trading Lounge
Australian Dollar/U.S. Dollar (AUDUSD) – Day Chart
AUDUSD Elliott Wave Technical Analysis

Function: Trend

Mode: Impulsive

Structure: Orange Wave 1

Position: Navy Blue Wave 1

Direction Next Lower Degree: Orange Wave 2

Details: Orange wave 1 of navy blue wave 1 is unfolding as part of a new trend

Wave Cancel Invalid Level: 0.59150

The AUDUSD day chart illustrates the initial stages of a potential new trend, unfolding through an impulsive Elliott Wave pattern. The pair is currently forming orange wave 1 within the broader navy blue wave 1, suggesting the early development of a larger impulsive move on both current and higher timeframes. This structure implies the possible start of a long-term trend sequence consisting of multiple waves.

Orange wave 1 marks the first leg of this emerging trend, typically seen with increasing momentum as market sentiment begins to shift. While wave 1 is often less dynamic than later impulsive waves, it plays a pivotal role in signaling the inception of a new trend. The structure forming at this stage indicates the pair is setting the groundwork for a potential five-wave advance.

The expected next move is a pullback in orange wave 2, following the completion of wave 1. This correction will likely offer a retracement before a potentially stronger wave 3. The daily timeframe provides a strategic vantage point to observe this progression, highlighting that the current price behavior may serve as the base of a broader upward trend.

Traders should keep an eye on the 0.59150 level, which is the invalidation point for the current wave count. A move below this support would necessitate a reassessment of the Elliott Wave pattern. This level acts as a key support zone and safeguards the origin of wave 1.

As wave 1 progresses, traders should look for hallmarks of an emerging trend such as consistent price movement and increasing momentum. The analysis emphasizes trend confirmation while preparing for retracements that could present viable entry opportunities. Watch for key technical signals and price action cues as this wave structure evolves.

Australian Dollar/U.S. Dollar (AUDUSD) – 4-Hour Chart
AUDUSD Elliott Wave Technical Analysis

Function: Trend

Mode: Impulsive

Structure: Orange Wave 1

Position: Navy Blue Wave 1

Direction Next Lower Degree: Orange Wave 2

Details: Orange wave 1 of navy blue wave 1 is progressing as a new trend

Wave Cancel Invalid Level: 0.59150

The AUDUSD 4-hour chart highlights the emergence of a new trend within an impulsive Elliott Wave structure. The pair is currently forming orange wave 1 inside the broader navy blue wave 1 formation, indicating the start of a fresh impulse sequence. This pattern signals the initial phase of what may evolve into a five-wave movement across both short- and medium-term timeframes.

Orange wave 1 initiates the trend, typically marked by a steady build-up in momentum as the market starts to define a new directional path. Though wave 1 tends to exhibit moderate price action compared to later impulsive waves, its development is key to confirming the beginning of a larger trend. This wave is expected to unfold gradually, setting the stage for upcoming corrective and continuation phases.

The next move anticipated is the corrective orange wave 2, following the completion of wave 1. This pullback is likely to offer traders a buying opportunity ahead of a potential stronger wave 3 continuation. The 4-hour timeframe provides valuable insight into this structural development, suggesting the current market behavior forms the base of a more expansive upward movement.

A key level to monitor is 0.59150, which serves as the invalidation point for this wave count. A price drop below this support would invalidate the current analysis and require a fresh look at the wave structure. This level is crucial in protecting the origin of the wave count.

Traders should closely observe the progression of wave 1, noting traits such as steady momentum and advancing price structure. The analysis underscores preparing for trend-following setups, with the understanding that wave 1 may be more tempered than the explosive nature of wave 3. Confirmation from indicators and price behavior will be vital as the structure unfolds.

The transition into navy blue wave 1 at a higher degree suggests potential for a longer-lasting trend. Traders are encouraged to track price action and supporting technical tools while being vigilant about the invalidation threshold that could shift the wave outlook.

Technical Analyst: Malik Awais

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