Australian Dollar/U.S. Dollar (AUDUSD) Day Chart

AUDUSD Elliott Wave Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Navy Blue Wave 2

Position: Gray Wave 1

Direction Next Lower Degrees: Navy Blue Wave 3

Details: Navy Blue Wave 1 appears complete, with Navy Blue Wave 2 currently unfolding.

Wave Cancel Invalid Level: 0.69426

The AUDUSD Day Chart Elliott Wave analysis showcases a counter-trend scenario in a corrective phase, progressing as Navy Blue Wave 2. With the prior Navy Blue Wave 1 concluding its downward trajectory, the focus shifts to a temporary corrective phase in Navy Blue Wave 2. This wave typically involves slight upward retracements, offering a pause in the dominant bearish trend before the likely continuation with Navy Blue Wave 3.

Key insights into Navy Blue Wave 2 reveal its corrective nature, marked by short-term consolidations or mild upward movements countering the downward momentum set by Navy Blue Wave 1. This phase often indicates temporary stabilization or minor recovery, which precedes a potential resumption of the broader downtrend. These corrective waves are crucial as they provide an opportunity for traders to reevaluate market dynamics within the prevailing trend structure.

An invalidation level of 0.69426 is critical for this wave setup. If breached, it would invalidate the current wave structure and necessitate revisiting the Elliott Wave count. This level is a vital marker, aiding in confirming the ongoing correction’s boundaries while safeguarding the larger trend framework.

In Summary:

• The AUDUSD Day Chart analysis highlights a corrective phase within Navy Blue Wave 2, following the bearish trend established by Navy Blue Wave 1.

• This counter-trend correction allows for potential upward movement within the broader downtrend.
• The 0.69426 invalidation level is essential to maintain the integrity of the current wave structure. Breaching this level would nullify the current analysis.
• Upon completing this corrective phase, the trend is expected to continue downward with Navy Blue Wave 3.

Australian Dollar/U.S. Dollar (AUDUSD) 4-Hour Chart

AUDUSD Forex Pair Technical Analysis

Function: Counter Trend

Mode: Corrective

Structure: Navy Blue Wave 2

Position: Gray Wave 1

Direction Next Lower Degrees: Navy Blue Wave 3

Details: Navy Blue Wave 1 appears complete, with Navy Blue Wave 2 now unfolding.

Wave Cancel Invalid Level: 0.69426

The AUDUSD 4-Hour Chart Elliott Wave analysis highlights a corrective counter-trend phase evolving as Navy Blue Wave 2. Following the completion of Navy Blue Wave 1, which set a definitive downtrend, the chart now transitions into a correction. This phase suggests a temporary pause or limited upward retracement in the dominant bearish trend before a possible continuation in Navy Blue Wave 3.

During Navy Blue Wave 2, the retracement counters the primary downtrend created by Navy Blue Wave 1. Such corrections are typical of market cycles where price action stabilizes or recovers slightly, allowing traders to reassess positions. However, the overarching bearish outlook remains intact, with the corrective wave expected to end before resuming the downward trend.

The invalidation level of 0.69426 serves as a boundary for this corrective wave. Crossing this threshold would nullify the current wave structure, demanding a reevaluation of the analysis. This marker is critical for traders to determine the validity of the correction and plan for the next phase in the trend.

In Summary:

• The AUDUSD 4-Hour Chart analysis signals a counter-trend correction unfolding as Navy Blue Wave 2, after the conclusion of Navy Blue Wave 1.

• This phase is expected to deliver a short-term pause or retracement within the larger downtrend.
• The 0.69426 invalidation level is pivotal to maintain the current wave count, as breaching it would invalidate the structure.
• Following the conclusion of Navy Blue Wave 2, the trend is likely to continue downward into Navy Blue Wave 3.

Technical Analyst: Malik Awais

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