? AUD/USD Bullish Complex Correction Aims at 50% Fibonacci ?

3 min read

Dear traders,

the AUD/USD is showing increased choppiness as price action remains unable to break below the support zone at 0.6750. The current wave outlook still favors a bullish retracement.

AUD/USD

4 hour

The AUD/USD is testing the Fibonacci retracement levels of wave X vs W and a bullish bounce above the 138.2% Fib could indicate a wave Y (green) of wave 4 (blue). This wave pattern remains valid as long as the price stays above the 138.2% and below the resistance (red x) trend line (red). A bearish bounce and move lower could confirm (green check) the end of the wave 4 (blue) and start of the downtrend.

1 hour

The AUD/USD seems to be building a complex WXY (green) correction within the wave 4 (blue). A bullish breakout above resistance (red) could confirm (green check) the extension of wave 4 (blue) but a bearish bounce at the 38.2% Fib is key to confirm the reversal. A breakout below the 138.2% Fib invalidates (red x) the wave X (green) pattern whereas a break above the 50% Fib makes the wave 4 (blue) less likely (red x).

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Good trading,
Chris Svorcik
Elite CurrenSea

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