the AUD/USD is building a choppy and corrective pattern. This is typical for a wave 4 (pink) and an uptrend continuation is around the corner.
This article explains when the bulls are expected to regain control – with just just a week before the US Presidential elections.
The AUD/USD needs to break above the resistance trend line (orange) for a bullish breakout (green arrows). The main targets are the Fibonacci levels of wave 5 vs 1+3.
There is plenty of space if the current Elliott Wave analysis is correct. Because price action can complete a wave 5 (pink) of wave 3 (purple) before completing another wave 5 (purple).
A bearish breakout could indicate a decline (red arrow) towards the 50% Fibonacci retracement level of wave 4 vs 3. This could still be a bullish bouncing spot (blue arrow). Only a break below the 61.8% Fib makes the wave 4 (pink) less likely.
On the 4 hour chart, price action seems to have completed an ABC (purple) zigzag. Now price action could be developing a bullish wave 1-2 (purple) pattern.A break below the 100% Fib of wave 2 vs 1 invalidates (red x) this wave outlook. But a bullish bounce or breakout confirms the continuation within wave 3 (purple). Price will need to reach at least the 161.8% Fib before the wave 3 is fully confirmed.