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

AUD/USD Elliott Wave technical analysis

  • Function: Counter Trend.

  • Mode: Corrective.

  • Structure: Navy Blue Wave 2.

  • Position: Gray Wave 1.

  • Direction next lower degrees: Navy Blue Wave 3.

  • Details: Navy Blue Wave 1 appears complete, with Navy Blue Wave 2 now unfolding.

  • Wave cancel invalid level: 0.69426.

The AUDUSD Day Chart Elliott Wave analysis illustrates a counter-trend phase within a corrective mode, presently manifesting in Navy Blue Wave 2. Following the conclusion of Navy Blue Wave 1, which indicated a downward movement, the chart now presents a temporary corrective period within Navy Blue Wave 2. This phase usually aligns with minor upward retracements, pausing the dominant downtrend before potentially resuming with Navy Blue Wave 3.

As Navy Blue Wave 2 is corrective, it suggests short-term consolidation or slight upward movement countering the prevailing downtrend set by Navy Blue Wave 1. This stage provides an opportunity for some price stabilization or recovery prior to a potential continuation of the primary bearish trend. Such counter-trend activity is typical in corrective waves, implying that while the main trend is likely to continue downward, temporary pullbacks may occur within the correction.

An invalidation level has been set at 0.69426, marking a critical threshold for the corrective pattern. Exceeding this level would invalidate the current wave structure and require a reassessment of the wave count. This invalidation point is a key reference for evaluating the durability of the ongoing corrective wave.

In summary

The AUDUSD Day Chart analysis for Navy Blue Wave 2 signals a temporary corrective stage following the downward trend of Navy Blue Wave 1. This corrective mode indicates a counter-trend movement that allows for potential upward retracement within the broader bearish trend. The 0.69426 invalidation level is crucial for confirming the wave structure, as breaching it would nullify the present wave analysis. Once the current corrective phase concludes, a likely continuation of the downtrend in Navy Blue Wave 3 is expected.

AUDUSD

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

AUD/USD Elliott Wave technical analysis

  • Function: Counter Trend.

  • Mode: Corrective.

  • Structure: Navy Blue Wave 2.

  • Position: Gray Wave 1.

  • Direction next lower degrees: Navy Blue Wave 3.

  • Details: Navy Blue Wave 1 appears complete, with Navy Blue Wave 2 now in play.

  • Wave cancel invalid level: 0.69426.

The 4-hour Elliott Wave analysis for the AUD/USD pair highlights a counter-trend movement within a corrective mode, currently unfolding as Navy Blue Wave 2. After completing Navy Blue Wave 1, which established a downward trend, the chart now points to a correction phase within Navy Blue Wave 2, suggesting a temporary pause or potential reversal in the larger trend. This phase implies a period of consolidation or slight upward movement before possibly resuming the downtrend in Navy Blue Wave 3.

Navy Blue Wave 2 acts as a retracement against the dominant downtrend initiated by Navy Blue Wave 1. This corrective phase often signals a reassessment by market participants, which could offer short-term relief to the prevailing downtrend. The corrective nature of this phase aligns with a temporary counter-trend movement rather than a full reversal of the primary trend direction.

An invalidation level is established at 0.69426, serving as a crucial boundary to maintain the current wave structure. Should prices move above this level, it would invalidate the existing pattern and likely require a revision of the Elliott Wave count. This threshold functions as a protective marker, ensuring that Navy Blue Wave 2's corrective structure remains intact without disrupting the larger trend.

In summary

The 4-hour Elliott Wave analysis for AUDUSD indicates a corrective counter-trend phase within Navy Blue Wave 2, following the completion of Navy Blue Wave 1’s downtrend. This corrective mode suggests a short-term pause in the broader bearish trend, with potential upward movement limited by the invalidation level of 0.69426. This setup implies that AUDUSD may resume its downward trend after the completion of the current corrective phase, provided the invalidation level remains unbreached.

AUDUSD

AUD/USD Elliott Wave technical analysis [Video]

As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.

Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.

The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD challenges 1.0500 on Dollar's bounce

EUR/USD challenges 1.0500 on Dollar's bounce

The US Dollar now picks up further pace and weighs on the risk-associated assets, sending EUR/USD to the boundaries of the key 1.0500 region and at shouting distance from its 2024 lows.

EUR/USD News
GBP/USD remains weak and puts 1.2600 to the test

GBP/USD remains weak and puts 1.2600 to the test

GBP/USD remains on the back foot and now approaches the key support at 1.2600 the figure in response to the resurgence of the bid bias in the Greenback.

GBP/USD News
Gold faces extra upside near term

Gold faces extra upside near term

Gold extends its bullish momentum further above $2,660 on Thursday. XAU/USD rises for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. Markets await comments from Fed policymakers.

Gold News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

Read more
A new horizon: The economic outlook in a new leadership and policy era

A new horizon: The economic outlook in a new leadership and policy era

The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures