the AUD/USD has completed a 5 wave impulse (turquoise waves) at the recent low within a larger downtrend.
A period of correction may now be expected for at least the coming days.
Potential bounce trade options should appear soon… i.e. at the start of turquoise Wave C, or at the completion of turquoise Wave C/purple Wave 4).
Bullish bounce trade option
A completed ABC subwave structure and a bullish candlestick pattern near the last low of around 0.7530 – 0.7555 could indicate the start of impulsive Wave C and may provide options for long trades.
Based on the Elliott Wave Theory and wave patterns, potential target areas are highlighted as dark rectangles.
Bearish bounce trade option:
The darker areas are also POC zones that may signal the end of purple Wave 4 and continuation of the larger downward trend, especially the POC zone around 0.7700.
A bearish candle stick pattern at that level could be a potential signal for new shorts, targeting 0.7500 and 0.7430 (-27.2% fib of purple Wave 3).
Hubert is a trader who uses wave patterns and the ecs.SWAT method. He is also doing analysis and articles for the EliteCurrenSea.com website.