The short-term Elliott wave view in the AUDUSD suggests that the decline from the 02 February 2023 peak has ended as a diagonal structure where wave 1 ended at $0.6458 low. A bounce to $0.6899 high ended wave 2. Wave 3 ended at $0.6356 low, and wave 4 ended at $0.6511 high. Then a decline to $0.6269 low ended wave 5 thus ended wave (1). Above from there, the pair is doing a bounce in wave (2) against that cycle. And the pair soon needs to decide if it’s going to extend in 7 swings or a simple A-B-C from the lows.

So far, the rally from the lows is unfolding in 3 waves only but is expected to take the form of simple A-B-C. Whereas the first leg to $0.6283 high has ended wave ((i)). Then a pullback to $0.6313 low ended wave ((ii)). Up from there, the pair has managed to reach the extreme from the lows at $0.6427- $0.6497 area. From there, the pair is expected to make a small pullback. Then decide whether it’s going to continue higher in an impulse sequence with a shallow pullback. Or if it makes a strong pullback against the $0.6269 low then the bounce can extend in corrective 7 swings from the lows. Near-term, as long as dips remain above $0.6269 low expect the pair to continue to extend higher in the bounce. We don’t recommend buying the pair.

AUDUSD 1-Hour Elliott Wave Chart From 11.02.2023

(Click on image to enlarge)

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