Elliott Wave Analysis: AUDUSD Trading Within a Complex Correction

A Elliott Wave triangle is still unfolding on the daily chart, currently in wave D that can be looking for a support in the weeks ahead, near the lower red trendline around the 0.7250 zone, where Fibonacci of 78.6 could prove to be a nice region of support. Ideally, the market will make a final bounce up into wave E from that zone to complete wave IV by the end of the year.

AUDUSD, Daily

Regarding the 4h view, we can see that Aussie has turned down a few weeks back, from 0.7778 to be exact, from where the sharp turn suggests that the pair can still be trapped in a very big triangle formation visible on a daily chart. If that’s true, then the move down from the start of November was another three wave decline, this time in wave D that shows signs of completion at 0.7310 area, so the current leg up is wave E, final leg in wave IV triangle that can face resistance later this week at 0.7600-0.7700 region.

AUDUSD, 4H

Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.

Basic Triangle Pattern:

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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