Aussie dollar strong, will technicals hold-up?

AUD/USD Elliott Wave Analysis: Resistance  0.9080-0.9170

AUD/USD has found support in the past two weeks and rallied more than 300 pips from 0.8650, which can be wave C as part of a flat correction in wave B).

The reason is a three-wave decline from above 0.9080 that we think it's corrective wave B as a part of a bigger complex correction. If we are on the right track then the pair will rise up to the 0.9080-0.9170 resistance zone in the next few trading days where a completion of a contra-trend pattern may occur.

AUDUSD Daily Elliott Wave Analysis

 

AUD/USD Four-hour

AUD/USD is testing last week highs, so it seems that pair is still moving up in wave (v) of C, final leg of the pattern that is expected to form a top for AUD/USD  this week. We are tracking a flat correction labeled since mid-December that is a contra trend movement, thus it suggests more weakness for AUD/USD in weeks ahead. Ideally price will turn impulsively back to 0.8900 that will put pair in bearish mode.

AUDUSD 4h Elliott Wave Analysis

 

Elliott Wave Education: Flat Pattern

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Expanded Flat – Elliott Wave Pattern

 • structure is 3-3-5 • wave B moves beyond the start of wave A • wave C ends more substantially beyond the ending level of wave A • appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

Written by www.ew-forecast.com   

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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