AUDUSD has found a support in the past two weeks and rallied more than 300 pips from 0.8650 which can be wave C as part of a flat correction in wave B). The reason is a three wave decline from above 0.9080 that we think it's corrective wave B as a part of a bigger complex correction. If we are on the right track then pair will rise up to 0.9080 - 0.9170 resistance zone in the next few trading days where a completion of a contra-trend pattern may occur.

AUDUSD Daily Elliott Wave Analysis

AUDUSD Daily Elliott Wave Analysis Chart

AUDUSD Four Hour

AUDUSD is testing last week highs, so it seems that pair is still moving up in wave (v) of C, final leg of the pattern that is expected to form a top for AUDUSD in this week. We are tracking a flat correction labeled since mid-December that is a contra trend movement, thus it suggests more weakness for AUDUSD in weeks ahead. Ideally price will turn impulsively back to 0.8900 that will put pair in bearish mode.

AUDUSD 4h Elliott Wave Analysis

AUDUSD 4-Hour Elliott Wave Analysis Chart

Elliott Wave Education: Flat Pattern
A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott pattern.

Expanded Flat – Elliott Wave Pattern

• structure is 3-3-5
• wave B moves beyond the start of wave A
• wave C ends more substantially beyond the ending level of wave A
• appears in wave two or four in an impulse, wave B in an A-B-C, wave X in a double or triple zig-zag, or wave Y in a triple threes

Written by www.ew-forecast.com | Try our 7 Days Free Trial Here

Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.

Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.

© 2014 Copyright Gregor Horvat - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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