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

AUDUSD Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Gray Wave 3
• Position: Orange Wave 3
• Direction Next Higher Degrees: Gray Wave 4
• Details: Gray wave 2 appears complete; gray wave 3 is currently in play.
• Wave Cancel Invalid Level: 0.64345

The AUDUSD day chart analysis shows a prevailing bearish trend in line with Elliott Wave theory. The market remains in an impulsive phase, with gray wave 3 advancing. This progression is part of a larger downward structure, signifying strong bearish momentum.

Gray wave 2 has already concluded, marking the end of a prior corrective phase. Presently, the market is mid-way through gray wave 3, which typically reflects the most intense and extended phase of the Elliott Wave sequence. This wave aligns with the broader downward trend, reinforcing the current bearish sentiment.

At a lower degree, the position aligns with orange wave 3, which is unfolding within the overarching gray wave 3 structure. Orange wave 3 strengthens the downward outlook and brings further clarity to the impulsive move.

Outlook

The higher-degree direction points toward gray wave 4, anticipated to bring a corrective rebound after gray wave 3 completes. However, the immediate focus remains on the bearish progression of gray wave 3 and orange wave 3, both continuing to drive the price downward.

Critical Invalidation Level

The invalidation level for this wave count stands at 0.64345. If the price surpasses this point, the current wave analysis would become invalid, requiring a reassessment of the wave structure. This level serves as an essential marker for risk management and identifying potential trend reversals.

Summary

The AUDUSD day chart emphasizes a strong bearish trend, supported by the active progression of gray wave 3 and orange wave 3. With gray wave 2 complete and momentum continuing downward, further price declines are likely. Traders should remain aligned with the bearish outlook while monitoring the invalidation level at 0.64345 for any potential changes in trend direction.

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

AUDUSD Elliott Wave Technical Analysis

• Function: Bearish Trend
• Mode: Impulsive
• Structure: Micro Navy Blue Wave 3
• Position: Gray Wave 3
• Direction Next Higher Degrees: Gray Wave 4
• Details: Micro navy blue wave 2 appears completed; micro navy blue wave 3 is currently in play.
• Wave Cancel Invalid Level: 0.64345

The AUDUSD 4-hour chart analysis confirms a bearish trend as per Elliott Wave principles. The market remains in an impulsive phase, with micro navy blue wave 3 progressing downward. This wave exists within the broader gray wave 3, reflecting the ongoing dominant bearish movement.

The analysis shows that micro navy blue wave 2 has already completed, indicating the end of a minor corrective phase. The market has now transitioned into micro navy blue wave 3, which typically represents the most dynamic and extended phase of the Elliott Wave structure. This wave is known for generating strong downward momentum, suggesting further price declines in the short term.

Higher Degree Outlook

The next phase within the higher degree cycle is gray wave 4, expected to bring a corrective rebound once gray wave 3 concludes. However, the current focus remains on the downward trajectory of micro navy blue wave 3, which continues to drive the market lower.

Critical Invalidation Level

The invalidation level for this wave count is set at 0.64345. If the price rises above this level, the current Elliott Wave structure would be invalidated, necessitating a reassessment of the market outlook. This benchmark is essential for managing risks and identifying potential trend reversals.

Summary

The AUDUSD 4-hour chart highlights a clear bearish trend, with micro navy blue wave 3 actively driving the downward momentum. The completion of micro navy blue wave 2 and the continued development of wave 3 indicate ongoing market weakness. Traders should align their strategies with the bearish outlook while carefully monitoring the invalidation level at 0.64345 to effectively manage risks.

Technical Analyst: Malik Awais

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