AUDUSD broke higher recently, trading well above wave A-circled following a 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 when the pair will ideally find resistance near the 0.7800-0.7900 area. So for the mid-term view, we are expecting higher prices, but after a retracement with wave 4) back to the 0.7400 area.
AUDUSD, Daily
On the lower time frame, AUDUSD turned nicely higher after wave 4 completed a corrective set-back at 0.7408. We know that after wave four markets will make a firth wave which already moved up to our Fibonacci resistance area so we need to be aware of a completed extended red wave 3) that puts a new pullback in play. We are observing red wave four of a higher degree which will ideally retrace back to 0.7400 handle with three sub-waves before the uptrend resumes towards 0.7750-0.7800.
AUDUSD, 4H
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