AUDUSD: Flat correction in the making

AUDUSD broke higher recently, now trading well above wave A-circled after a very strong rally in the last two weeks, so it looks like the price is headed even higher within wave C of wave IV which is now making a flat correction. So despite higher prices we will look down again, but after a completed five wave move in wave C. Ideally the pair will find resistance near the 0.7800-0.7900 area in the coming weeks. So, for the mid-term view we are expecting higher prices.

AUDUSD, Daily

On the lower time frame, AUDUSD keeps moving higher in an impulsive fashion from 0.7107 that looks like an extended wave which typically occurs in the middle of a five wave move. Therefore we suspect wave 3 of 3) can be near completion around 161.8% Fibonacci extension level of wave 1 measured from end of wave 2. That said, we think that the Aussie can see a new pullback soon; back into wave 4 which will look for a support around 0.7400/0.7410, but after a three wave of decline. Divergence on the RSI also suggests that a pullback is due.

AUDUSD, 4H

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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