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AUDUSD Elliott Wave Analysis Trading Lounge Day  Chart, 22 January 2024

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

AUDUSD Elliott Wave Technical Analysis

Function:   Trend

Mode: impulsive

Structure: Subwaves of black wave 3

Position:  Red wave 3

Direction Next Higher Degrees: black wave 3(started)

Details: black wave 2 looking completed at 0.65239. Now black wave 3 may be starting. Wave Cancel invalid level: 0.62738

The "AUDUSD Elliott Wave Analysis Trading Lounge Day Chart" dated 22 January 24, provides a comprehensive analysis of the Australian Dollar/U.S. Dollar (AUDUSD) currency pair using Elliott Wave theory. Elliott Wave analysis is a technical approach that seeks to identify repetitive wave patterns in financial markets to forecast potential future price movements.

The identified "Function" in this analysis is "Trend," indicating a primary focus on understanding and capturing the prevailing direction of the market. The emphasis is on identifying and riding the impulsive waves that represent strong and directional price movements.

The declared "Mode" is "Impulsive," suggesting that the market is currently in a phase characterized by strong, directional moves. Impulsive waves typically consist of five sub waves, labeled 1, 2, 3, 4, 5, with waves 1, 3, and 5 representing the directional phases.

The recognized "Structure" involves the examination of "Sub Waves of black wave 3." This implies a detailed analysis of the internal sub waves within the larger structure of black wave 3, providing a more nuanced understanding of the ongoing trend.

The "Position" is specified as "Red wave 3," indicating the current phase within the Elliott Wave count. Black wave 3 is a subwave within the larger structure of Red wave 3.

In terms of "Direction Next Higher Degrees," the focus is on the expected initiation of "black wave 3 (started)." This suggests that the analyst anticipates the commencement of the third major wave within the larger degree structure.

The "Details" section highlights that "black wave 2 looking completed at 0.65239," indicating the conclusion of the second corrective wave within the broader trend. The implication is that the market is transitioning into the impulsive phase of black wave 3.

The "Wave Cancel invalid level" is identified as "0.62738." This level serves as a crucial reference point, indicating that a breach of this level could invalidate the current wave count, necessitating a reassessment of the analysis and potentially signaling a change in the anticipated market direction.

In summary, the AUDUSD Elliott Wave Analysis for the day chart on 22 January 24, points to an impulsive trend, with black wave 2 concluded and the potential initiation of black wave 3. Traders are advised to closely monitor the market, with particular attention to the invalidation level at 0.62738.

Technical Analyst: Malik Awais

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