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 Lower Degree Direction: Navy Blue Wave 4
• Wave Cancellation Invalid Level: 0.62344

Analysis Overview:

The AUDUSD Elliott Wave Analysis for the day chart suggests a bullish trend with the market currently in an impulsive mode. The structure is identified as Navy Blue Wave 3, forming part of a larger upward movement within Gray Wave 1. This strong uptrend aligns with the impulsive wave structure and indicates ongoing upward momentum.

The next expected movement is Navy Blue Wave 4, which will likely begin once Navy Blue Wave 3 is completed.

Key Insights:

• Wave 2 Completion: The analysis suggests that Navy Blue Wave 2 has likely concluded.
• Wave 3 Progression: Navy Blue Wave 3 is currently in motion, expected to exhibit strong bullish momentum consistent with an impulsive wave.
• Potential Corrective Phase: Once Wave 3 completes, Navy Blue Wave 4 may introduce a corrective phase, potentially bringing temporary pullbacks or consolidation before the uptrend resumes.

Critical Level to Watch:

• The wave cancellation invalid level is set at 0.62344.
• A break below 0.62344 would invalidate the current wave count, signaling the need to reevaluate the market structure.
• This level acts as a key support, and a breach could indicate a trend shift or structural change.

Conclusion:

The AUDUSD market remains in a bullish trend, with Navy Blue Wave 3 actively unfolding following the completion of Navy Blue Wave 2. The next expected phase is Navy Blue Wave 4, likely introducing a corrective movement before the trend continues.

Traders should closely monitor price action around the 0.62344 level, as it serves as a key threshold for validating the current wave count and maintaining the bullish outlook. Understanding wave structures is essential to anticipate market movements and optimize trading strategies accordingly.

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

AUDUSD Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Orange Wave 2
• Position: Navy Blue Wave 3
• Next Higher Degree Direction: Orange Wave 3
• Wave Cancellation Invalid Level: 0.62344

Analysis Overview:

The AUDUSD Elliott Wave Analysis for the 4-hour chart indicates a counter-trend scenario, placing the market in a corrective phase. The current structure identifies Orange Wave 2, which forms part of a larger corrective pattern within Navy Blue Wave 3. This suggests that the market is undergoing an intermediate correction before resuming its broader trend.

The next expected higher-degree movement is Orange Wave 3, which is likely to follow once Orange Wave 2 is completed.

Key Insights:

• Wave 1 Completion: Orange Wave 1 appears to have ended, signaling the transition to Orange Wave 2.
• Corrective Characteristics: Orange Wave 2 is expected to display sideways or downward movement, typical of corrective waves.
• Next Impulse Move: Once Orange Wave 2 concludes, Orange Wave 3 is expected to begin, driving the market in alignment with the larger trend.

Critical Level to Watch:

• Wave Cancellation Invalid Level: 0.62344
• If the price moves above 0.62344, it would invalidate the current wave count, requiring a market reassessment.
• This level serves as key resistance, and a breakout beyond it could indicate a potential shift in trend.

Conclusion:

The AUDUSD market is currently in a corrective phase, with Orange Wave 2 in play after the completion of Orange Wave 1. This correction occurs within Navy Blue Wave 3, and the next major move is anticipated to be Orange Wave 3.

Traders should closely monitor the completion of Orange Wave 2, as it will provide insights into the timing and direction of the next impulse wave. The analysis emphasizes the importance of understanding wave structures to anticipate market movements and optimize trading strategies accordingly.

Technical Analyst: Malik Awais

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