**AUD/USD Wave Analysis: In-Depth Examination and Future Outlook
Credit: ActionForex.com Technical Analysis Team**
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**Introduction**
The AUD/USD currency pair is one of the most actively traded pairs in the Forex market. Traders frequently analyze this pair due to the global economic influence of both Australia and the United States. In this comprehensive analysis, we delve into the recent wave patterns, technical indicators, and potential scenarios that may unfold for AUD/USD. The original analysis by ActionForex.com serves as the foundation, with supplementary insights to give traders a fuller picture of where the pair may head in the coming sessions.
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**Elliott Wave Context for AUD/USD**
Elliott Wave Theory is a popular method for analyzing Forex price action with the aim of predicting future market movements based on recurring wave patterns. According to the recent ActionForex.com analysis:
– The current structure suggests AUD/USD is inside a corrective phase, specifically part of an incomplete upward correction within a larger trend.
– This phase is likely part of a complex wave B inside a larger A-B-C corrective formation.
– The rally in AUD/USD from its recent low appears to be shaped as a zigzag pattern, with internal sub-waves suggesting ongoing bullish pressure.
– The importance of the wave structure lies in its ability to help traders distinguish between trending and corrective market phases.
**Technical Structure Breakdown**
Examining the underlying technical setup reveals the following points:
– **Primary Support Zone**: Key support is identified by recent swing lows, particularly in the 0.6580 to 0.6610 area.
– **Near-term Resistance**: Resistance is marked around 0.6730 to 0.6765, where previous rallies have met selling pressure.
– **Intermediate Structure**: An ongoing bull run is visible as long as the price stays above pivotal support, but the approach to resistance complicates the scenario.
**Wave Analysis Details**
ActionForex.com notes the following regarding the wave composition:
– The initial bearish impulse led to the creation of wave A.
– This was followed by a likely ongoing wave B, which is subdivided into smaller corrective patterns.
– The current rally could be interpreted as the ‘c’ leg of a zigzag within wave B.
– The expectation is for the rally to continue toward higher resistance levels before a major reversal opportunity.
**Key Elliott Wave Implications**
Based on these observations, traders should consider:
– The corrective pattern suggests upside potential is limited but not exhausted.
– When the pattern finishes, a resumption of the broader downtrend is anticipated as wave C begins.
– The completion of the current upward leg should be monitored for reversal signals, such as bearish candlestick formations or momentum divergence.
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**Complementary Technical Indicators**
Beyond wave analysis, it is essential to consider additional technical indicators to confirm the market bias:
– **Moving Averages**: The 50-period and 200-period moving averages often act as dynamic support or resistance. Currently, a bullish cross supports further rallies
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