Based on technical analysis AUD/USD Elliott Wave Forecast, the bullish trend is present in AUD/USD currency pair, 4 hours time frame based on AUD/USD Elliott Wave Weekly Forecast. As I have forecasted few hours ago, the price of AUD/USD pair is going to rise up now prints a Bullish Triple Zig Zag Elliott wave pattern and traders should look for a buy trade. So, all those Forex traders who have followed my Elliott wave forecast have made the right decision as price has ascended.
Strong key support level is present at 0.6252 price area which is termination point of Bearish corrective wave X leg. In my judgment, price action in AUD/USD currency pair is now going to move sideways. Next expect further rise in price action to complete a Bullish corrective pattern – wave Z leg. So, market is going to remain bullish on a short term basis. Next, expects a short term top in price action as well. Based on Elliott wave forecast, current Bullish trend is part of a Bullish corrective Elliott wave pattern, wave 4 leg in higher time frame.
Currently, Bullish corrective Elliott wave pattern, wave Z leg looks in-complete. So, a good idea is to look for a possible buy trading chance to join an up trend around 0.6495 price area. However; if price of AUD/USD currency pair breaks below 0.6252 vital support level then up trend is going to end. In such a market scenario, it would be best not to trade Forex market and re-do AUD/USD Elliott wave analysis in four hours chart.
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Now, at this point; I must acknowledge that the trend is bearish in higher time frame of AUD/USD currency pair.
Below is the daily chart of AUD/USD pair with my Elliott wave forecast which shows us a big picture and a well started bearish trend as well.
To me; price is printing Bearish impulse wave 5 leg. So, expect price action in AUD/USD currency pair to move sideways and then drop more to complete motive wave pattern. Next, price is going to prints a medium term bottom as well. Within Bearish Impulse Elliott wave pattern, all sub-waves must sub-divides into 5, 3, 5, 3 and 5 waves pattern.
The following Elliott Wave Bearish Impulse wave pattern diagram shows us a completed Bearish Impulse wave pattern within the frame work of Elliott wave principle.
The Bearish Impulse Wave pattern of the Elliott wave principle shows that how price action does not moves in a straight line fashion but in a series of lower swing highs and lower swing lows. Bearish Impulse Elliott wave pattern in a down trending market could be seen inside the above image. The figure shows what a Bearish Impulse Elliott wave pattern looks like. If a trader knows what a Bearish Impulse Wave pattern looks like, then it would become much easy for a currency trader to actually analyze the Forex charts and make a trading decision as well.
A Bearish Impulse wave consists of total five waves. Three bearish legs in the favour of a down trend. And two bullish corrective Elliott wave patterns, against the down ward market trend. We use numbers to label impulse wave 1, 2, 3, 4 and 5. Inside wave 2 and 4, we use English alphabets to label corrective wave structures. Please take a note that Bearish Impulse Wave pattern is a motive Elliott wave pattern. It appears at a trending market environment and moves in the favour of larger down ward market trend.
Based on my AUD/USD using Elliott Wave in daily chart, we have got an in-complete bearish wave 5 leg. So, market is going to first move sideways and then drop more to prints bearish Impulse wave 5 pattern. However; it is possible if price breaks above blue colour resistance line then forecast will become in-valid.
To me; in four hours chart of AUD/USD currency pair the bullish wave Z leg which is part of a higher degree wave 4 corrective wave pattern in daily chart is just a bullish leg in a down trend. As mentioned above as Bullish Triple Zig Zag corrective wave leg inside a 4 hours chart.
Strong key resistance level is present at 0.6848 price area in AUD/USD daily chart. So, I expect market to first move sideways for next coming trading days and then may be start moving down. So, in my opinion market is going to remain bearish overall. And on a medium to long term basis, expects a sideways to bearish leg in market. Next, market is probably going to resume the Bearish trend after that in AUD/USD currency pair, in daily chart.
Now, when an existing Bearish Elliott Wave Weekly Forecast in AUD/USD is going to fail?
Well, the forecast is good for about next two weeks time. And price should stays below 0.6848 resistance area in daily time frame to keep the down trend alive. A clear bullish break out in price action above 0.6848 resistance area will end the down trend. It will also fail bearish Elliott Wave Weekly Forecast as well. In such a market scenario, it would be best not to trade the market and re-analyze AUD/USD daily chart.
Based on AUD/USD Elliott Wave Weekly Forecast the trend is down in daily chart. A good idea is to look for a sell trade around 0.6575 price area. As price action is going to drop towards 0.5411. But a clear bullish break out in price action above 0.6848 vital resistance area will end down trend. On a medium term basis, it is a bullish trend in AUD/USD 4 hours time frame.
A good idea is to take a buy trade around 0.6495 price level. Next, price is probably going to rise up towards 0.6617 price level. However; if price of AUD/USD currency pair breaks below 0.6252 vital support level then bullish trend is going to end. We recommend trading with these top-rated brokers when using our signals/analyses/forecasts as they handle your trades quicker and more efficiently with very low spreads and most of them have high trade execution rate.
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