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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

audusd d

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

AUDUSD 4 (1)