AUDUSD Elliott Wave Analysis - Trading Lounge Day Chart
Australian Dollar/U.S. Dollar (AUDUSD) Daily Chart
AUDUSD Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Gray Wave 2
Position: Orange Wave 3
Next Higher Degree Direction: Gray Wave 3
Details: Gray Wave 1 complete; Gray Wave 2 is in progress.
Wave Cancel Invalidation Level: 0.66237
The AUDUSD Elliott Wave Analysis on the daily chart indicates that the market is currently experiencing a counter-trend movement, which is corrective in nature. The ongoing wave structure is classified as Gray Wave 2, following the completion of Gray Wave 1.
Gray Wave 1 marked the end of an impulsive wave, and the market has now shifted into Gray Wave 2, a corrective phase. According to Elliott Wave Theory, Wave 2 typically retraces a portion of Wave 1 before the broader trend resumes in the form of Gray Wave 3. Notably, Wave 3 is often the strongest and longest wave in an Elliott Wave cycle, suggesting significant market movement once the current corrective phase ends.
The next expected major move is Gray Wave 3, which is anticipated to continue the broader trend following the completion of Gray Wave 2. The invalidation level for this analysis is 0.66237, serving as a key threshold. If the market drops below this level, the current wave count will be invalid, and the Elliott Wave structure will require reevaluation.
Summary:
- The AUDUSD daily chart shows Gray Wave 2 is active after Gray Wave 1's completion.
- A corrective phase is in progress, with a potential shift to Gray Wave 3 expected soon.
- The 0.66237 invalidation level is crucial for confirming the wave structure.
AUDUSD Elliott Wave Analysis - Trading Lounge 4-Hour Chart
Australian Dollar/U.S. Dollar (AUDUSD) 4-Hour Chart
AUDUSD Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Gray Wave 2
Position: Orange Wave 3
Next Higher Degree Direction: Gray Wave 3
Details: Gray Wave 1 complete; Gray Wave 2 is in progress.
Wave Cancel Invalidation Level: 0.66237
The 4-hour chart for AUDUSD shows the market is in a corrective phase, following the completion of Gray Wave 1. The market has now entered Gray Wave 2, which is a temporary retracement or pullback from the broader trend. This corrective phase, identified as Gray Wave 2, is a standard feature of the Elliott Wave cycle, representing a pause before the trend resumes.
Once Gray Wave 2 is complete, Gray Wave 3 is expected to follow, bringing a strong continuation of the primary trend. Wave 3 is typically the most powerful wave in an Elliott Wave sequence, often accompanied by increased momentum and significant price movement.
The invalidation level remains at 0.66237. If the market moves below this level, the current wave structure will be invalidated, prompting a reassessment of the Elliott Wave analysis.
Summary:
- The AUDUSD 4-hour chart highlights that Gray Wave 2 is active after the completion of Gray Wave 1.
- Traders can expect Gray Wave 3 to resume the primary trend once Gray Wave 2 finishes.
- The invalidation level of 0.66237 remains critical for confirming the corrective phase.
Technical Analyst: Malik Awais
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