AUDUSD Expects to See More Upside Activity – Elliott wave analysis

Intermediate

On the 4h chart of AUDUSD we can see market trading in a bullish price move, commonly named an impulse. An impulse is a five-wave move, that trades into the direction of the stronger trend (in our case this is to the upside). That said, we know that nothing moves in straight lines, which means that after an 1-2-3-4-5 move develops, a temporary A-B-C correction can follow.

On our chart we see price now trading out of a triangle correction, which was located in wave 4), and into a wave 5), that can target 0.738 possible resistance area, or higher resistance at the 0.744 level. That said, once wave 5) unfolds, and we see price in a new impulsive and strong drop, also below the 0.726 level, that is when an A)-B)-C) correction can be underway, and bulls temporary on hold.

AUDUSD, 4h

audusd chart

Now let us look at USDCNH, market, which is negatively correlated to the AUDUSD.

USDCNH completed a big A)-B)-C) correction in 2020, and started declining impulsively, down from 7.19 high. This impulsive fall suggests more upside on the AUDUSD on the long-term, however on the near-term we still need to be aware of temporary pullbacks, as expected on AUDUSD 4h chart.

USDCNH, weekly

usdcnh chart

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which p... Continued

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest Related News

Dollar switches trend to up

US Dollar Index aims higher (DXY forecast)Euro breaks down - EURUSD forecastMajor negatives appear on Pound (GBPUSD forecast) and Aussie (AUDUSD forecast) Continued

Markets end 2020 in “risk on” mode

Macroeconomic/ geopolitical developments Trump finally signed the $900 billion COVID relief bill, a relief for markets.The EU-UK trade deal finally got done over the holiday season and was implemented at the end of 2020.Europe and the USA are still seeing aggressive increases in the numbers of cases, hospitalisations and deaths from COVID-19, as the new variant first identified in the UK is now being seen… Continued

Fresh lows on the US Dollar Index (DXY forecast)

Bull breakout on Euro (EURUSD forecast) Pound surges, breaks out (GBPUSD forecast) Aussie bull signal (AUDUSD forecast) US Dollar-CAD downtrend ends (USDCAD forecast)  Continued

US Dollar stays weak as AUDUSD and USDCAD approach key levels

Dollar Index reaches final major support (DXY forecast)Euro breaks up (EURUSD forecast)Pound posts negative (GBPUSD forecast)Aussie reaches major monthly resistance (AUDUSD forecast)Dollar-CAD approaches its major support zone (USDCAD forecast) Continued

NZD leads “risk” currencies higher – NZDUSD, AUDUSD, and USDCAD forecasts

A solid consolidation tone since midweek, but November strength seen across the major “commodity” or “risk” currencies (the New Zealand, Australian and Canadian Dollars) remains intact.The “risk on” price action is still being assisted by:Pfizer, Moderna and Astra Zeneca/ Oxford COVID-19 vaccine hopesExtension of the Biden bounceMixed, but marginally positive economic data compared with consensusHere we look at the NZDUSD, AUDUSD and USDCAD charts and… Continued

Forex Brokers in your location


SIGN UP

72% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

74-89% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

75% of retail investor accounts lose money when trading CFDs with this provider.


SIGN UP

76.4% of retail investor accounts lose money when trading CFDs with this provider.