AUDUSD is Approaching a Dangerous Area for the Bears
Hi Traders,
The daily chart of AUDUSD allows us to put the decline from 2018 high at 0.81340 into an Elliott Wave perspective. As can be seen, the market is drawing a textbook five-wave impulse, labeled 1-2-3-4-5. Wave 1-4 is completed, and we are currently in wave 5. The sub-waves of wave 3 are clearly visible, as well.
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In addition, the market took the guideline of alternation into account. Wave 2 is a simple a-b-c zigzag, while wave 4 is a triangle correction. If this count is correct, AUDUSD is now in the last phase – wave 5 – of this impulsive decline.
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Once the wave Wave 5 is over, which will most likely be terminated within the gray area on the chart, a sharp bullish reversal can be expected.
The anticipated recovery has the potential to lift AUDUSD price to the resistance area of wave 4 near 0.74006 if it's a corrective wave. In other words, a 100% rally seems to be around the corner if it's unfolded as an impulse wave.
.
Till then, we will be shorting AUDUSD in the shorter cycle.
Thanks for reading!
Veejahbee.
The daily chart of AUDUSD allows us to put the decline from 2018 high at 0.81340 into an Elliott Wave perspective. As can be seen, the market is drawing a textbook five-wave impulse, labeled 1-2-3-4-5. Wave 1-4 is completed, and we are currently in wave 5. The sub-waves of wave 3 are clearly visible, as well.
.
In addition, the market took the guideline of alternation into account. Wave 2 is a simple a-b-c zigzag, while wave 4 is a triangle correction. If this count is correct, AUDUSD is now in the last phase – wave 5 – of this impulsive decline.
.
Once the wave Wave 5 is over, which will most likely be terminated within the gray area on the chart, a sharp bullish reversal can be expected.
The anticipated recovery has the potential to lift AUDUSD price to the resistance area of wave 4 near 0.74006 if it's a corrective wave. In other words, a 100% rally seems to be around the corner if it's unfolded as an impulse wave.
.
Till then, we will be shorting AUDUSD in the shorter cycle.
Thanks for reading!
Veejahbee.
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