AUDUSD Elliott Wave Analysis Trading Lounge Day Chart

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
• Details: Orange Wave 1 is still active and nearing completion.
• Wave Cancel Invalid Level: 0.63494

The AUDUSD is currently demonstrating a bullish trend as per the Elliott Wave analysis on the daily chart. The market is operating in an impulsive mode, indicating a strong upward momentum that continues to build. The primary structure under observation is the orange wave 1, representing the initial phase of this upward movement. This wave remains active and is close to completing, which suggests that the ongoing bullish trend is still developing but may soon approach a corrective phase.

The market's position is identified as navy blue wave 1 within the larger orange wave 1 structure. This placement implies that the broader upward trend is still in its early stages, indicating potential for further gains before a significant pullback occurs. The analysis suggests that after the completion of the current wave, a corrective phase, indicated as orange wave 2, might follow. This anticipated correction is expected to be a temporary pullback within the overall bullish trend, setting the stage for the next phase of upward movement in subsequent waves.

A critical level to monitor is 0.63494, referred to as the wave cancel invalid level. This level is significant because if the price falls below it, the current wave structure would be invalidated, indicating a potential shift in the market's direction or even a possible trend reversal. This level serves as a key reference point for traders, helping them determine whether the bullish trend remains intact or if a change in market dynamics is occurring.

In summary, the AUDUSD is in a bullish impulsive trend on the daily chart, with the market positioned in navy blue wave 1 of orange wave 1. The trend remains upward, but the completion of orange wave 1 is approaching, and traders should monitor the 0.63494 level closely, as a breach of this level could invalidate the current wave structure and suggest a potential trend reversal.

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 1
• Direction Next Lower Degrees: Orange Wave 2
• Details: Orange Wave 1 is still active and nearing completion.
• Wave Cancel Invalid Level: 0.63494

The AUDUSD is currently in a bullish trend according to the Elliott Wave analysis on the 4-hour chart. The market is following an impulsive mode, indicating a strong and ongoing upward movement. The primary structure being observed is orange wave 1, which signifies that the initial phase of this upward trend is still in progress.

The market is positioned in navy blue wave 1, which is part of the larger orange wave 1 structure. This indicates that the market is in the early stages of a broader upward trend, with further gains expected before any significant correction or pullback occurs. Since orange wave 1 is still active, it suggests that the current upward movement is not yet complete, though it is nearing its completion.

The direction of the next lower degrees points to orange wave 2, implying that after the current upward wave completes, a corrective phase might follow. This correction would represent a temporary pullback in the broader bullish trend, likely setting the stage for further upward movement in subsequent waves.

The key level to monitor is 0.63494, identified as the wave cancel invalid level. If the market were to fall below this level, it would invalidate the current wave structure, signaling a potential shift in the market's direction or a possible trend reversal. This level serves as a crucial benchmark for traders to confirm the ongoing bullish trend.

In summary, the AUDUSD is currently in a bullish impulsive trend on the 4-hour chart, with the market positioned in navy blue wave 1 of orange wave 1. The trend remains upward, but traders should closely watch the 0.63494 level, as a drop below this point would invalidate the current wave structure and could signal a trend reversal.

Technical Analyst: Malik Awais

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