Elliott Wave View: AUDUSD Rallies Post Fed Meeting

Technical analysis of Forex market

Short term Elliott Wave View suggests that AUDUSD ended wave ((4)) pullback at 0.7617. Pair however still needs to break above wave ((3)) high at 0.8007 to avoid a double correction. Up from wave ((4)) low, wave ((i)) ended at 0.7726 and pullback in wave ((ii)) ended at 0.7665. Pair then resumed higher in wave ((iii)) towards 0.7784 and pullback in wave ((iv)) ended at 0.773. The final leg higher wave ((v)) ended at 0.78 which completed wave 1 in higher degree.

Pullback in wave 2 ended at 0.7695 with subdivision unfolding as a double three Elliott Wave structure. Down from wave 1, wave ((w)) ended at 0.7717, wave ((x)) ended at 0.7759, and wave ((y)) ended at 0.7695. Pair has resumed higher and broken above wave 1 suggesting wave 3 is in progress. Near term, expect wave ((i)) to end soon and pair to pullback in wave ((ii)) to correct rally from 0.7695 low before the rally resumes. As far as pivot at 0.7695 low stays intact, expect dips to find support in 3, 7, or 11 swing for further upside. Potential target higher is 100% – 161.8% Fibonacci extension of wave 1-2 towards 0.788 – 0.80.

AUDUSD 60 Minutes Elliott Wave Chart