Australian Dollar/U.S. Dollar (AUD/USD) Elliott Wave Analysis - Trading Lounge Day Chart
AUDUSD Elliott Wave Technical Analysis
Function: Bullish Trend
Mode: Impulsive
Structure: Navy Blue Wave 3
Position: Gray Wave 1
Next Higher Degree Direction: Navy Blue Wave 3 (In Progress)
Wave Cancel Invalidation Level: 0.61862
Analysis Overview
The AUD/USD daily chart shows a bullish trend with an impulsive wave structure. The market is currently progressing within Navy Blue Wave 3, following the completion of Navy Blue Wave 2. This confirms a strong upward momentum, reinforcing the next phase of the trend.
At present, the Gray Wave 1 position signals the early stage of a larger bullish cycle. With Navy Blue Wave 3 already initiated, traders should anticipate further upside potential as the trend unfolds.
As Navy Blue Wave 2 has been confirmed complete, price action suggests that the market is in a rally phase. The wave invalidation level is established at 0.61862—a break below this level would necessitate a reassessment of the wave structure.
Conclusion
The AUD/USD pair is in an impulsive bullish phase, with Navy Blue Wave 3 actively developing. The market remains in Gray Wave 1, indicating the start of a larger upward movement. Traders should monitor key price levels and wave structure confirmations to validate the strength of the ongoing bullish trend.
Australian Dollar/U.S. Dollar (AUD/USD) Elliott Wave Analysis - Trading Lounge 4-Hour Chart
AUDUSD Elliott Wave Technical Analysis
Function: Bullish Trend
Mode: Impulsive
Structure: Orange Wave 1
Position: Navy Blue Wave 3
Next Lower Degree Direction: Orange Wave 2
Wave Cancel Invalidation Level: 0.61862
Analysis Overview
The 4-hour Elliott Wave analysis of the AUD/USD pair confirms a bullish trend with an impulsive structure. Currently, the market is positioned within Orange Wave 1, which is a component of Navy Blue Wave 3. This setup suggests that the market remains in a strong upward phase, consistent with impulsive wave behavior. The next expected movement at a lower degree is Orange Wave 2, which would likely develop following the completion of Orange Wave 1.
The analysis further indicates that Navy Blue Wave 2 has likely concluded, and the market is progressing within Orange Wave 1 of Navy Blue Wave 3. Given the impulsive nature of this wave, strong upward momentum is expected to persist. Traders should carefully track the evolution of Orange Wave 1, as its completion may signal the beginning of Orange Wave 2, a potential corrective phase that could introduce temporary pullbacks or consolidation before the bullish trend resumes.
A key support level to watch is the wave cancellation invalidation level at 0.61862. A price drop below this threshold would invalidate the current wave count, prompting a reassessment of the market structure. This level serves as a crucial technical support, and a break below it might indicate a trend reversal or a shift in wave dynamics.
Conclusion
The AUD/USD pair continues its bullish trajectory, with Orange Wave 1 currently active following the confirmation of Navy Blue Wave 2 completion. This impulsive movement aligns with Navy Blue Wave 3, and the next anticipated phase is Orange Wave 2. Traders should closely observe the completion of Orange Wave 1, as it will offer key insights into the timing and direction of the upcoming lower-degree wave. Understanding wave structures is essential for predicting market movements and refining trading strategies accordingly.
Technical Analyst: Malik Awais
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