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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 Cancellation Invalid Level: 0.61862

Analysis Details

The AUDUSD Elliott Wave Analysis for the day chart highlights a bullish trend, with the market currently in an impulsive mode. The wave structure is identified as navy blue wave 3, forming part of a larger upward movement within gray wave 1. This suggests a strong upward phase in the market, consistent with an impulsive wave structure.

The next anticipated move at a higher degree is the continuation of navy blue wave 3, which has already begun and is expected to push the market further upward.

The analysis indicates that navy blue wave 2 has likely completed, and the market is now progressing through navy blue wave 3, which is expected to show strong bullish momentum. Traders should closely monitor this wave's development, as its completion will mark a critical turning point in the market cycle. This will provide insights into the timing and direction of the next higher-degree wave.

Key Level to Watch

A critical price level to monitor is the wave cancellation invalid level at 0.61862. If the price falls below this level, the current wave count would be invalidated, requiring a reassessment of the market structure. This level acts as key support, and its breach could indicate a trend shift or a change in the wave pattern.

Conclusion

The AUDUSD is currently in a bullish trend, with navy blue wave 3 now in play following the completion of navy blue wave 2. This impulsive movement is part of gray wave 1, and the next significant move is expected to be the continuation of navy blue wave 3.

Traders should carefully monitor the progress of navy blue wave 3, as it will provide valuable insights into the timing and direction of the next higher-degree wave. The analysis emphasizes the importance of understanding wave structures to anticipate potential market movements and align trading strategies accordingly.

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

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange Wave 3
• Position: Navy Blue Wave 3
• Next Higher Degree Direction: Orange Wave 3 (Started)
• Wave Cancellation Invalid Level: 0.61862

Analysis Details

The AUDUSD Elliott Wave Analysis for the 4-hour chart highlights a bullish trend, with the market currently in an impulsive mode. The wave structure is identified as orange wave 3, forming part of a larger upward movement within navy blue wave 3. This indicates a strong bullish phase, characteristic of an impulsive wave structure.

The next anticipated move at a higher degree is the continuation of orange wave 3, which has already begun and is expected to drive the market further upward.

The analysis suggests that orange wave 2 has likely concluded, and the market is now advancing through orange wave 3, expected to maintain strong bullish momentum. Traders should closely monitor this wave’s progress, as its completion will signal the potential start of a new phase in the market cycle. This point will be crucial for traders, providing insights into the timing and direction of the next higher-degree wave.

Key Level to Watch

A critical price level to monitor is the wave cancellation invalid level at 0.61862. If the price falls below this level, the current wave count would be invalidated, requiring a reassessment of the market structure. This level acts as key support, and its breach could indicate a trend shift or a change in the wave pattern.

Conclusion

The AUDUSD is currently in a bullish trend, with orange wave 3 now in play following the completion of orange wave 2. This impulsive movement is part of navy blue wave 3, and the next significant move is expected to be the continuation of orange wave 3.

Traders should closely track the development of orange wave 3, as it will provide valuable insights into the timing and direction of the next higher-degree wave. The analysis underscores the importance of understanding wave structures to anticipate potential market movements and adjust trading strategies accordingly.

Technical Analyst: Malik Awais

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