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

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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 He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website:

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