**AUD/USD Wave Analysis: In-Depth Technical Outlook**
*Original author: ActionForex.com – Technical Analysis Desk*
—
The AUD/USD currency pair continues to be a focal point for many forex traders due to its volatility and sensitivity to both domestic factors in Australia and broader global market themes. This extended analysis delves into the current wave structure shaping AUD/USD, enriched by supporting insights from technical indicators and relevant economic context. All original analysis credit goes to ActionForex.com, with additional context provided to create a deeper, comprehensive overview.
## Overview: Understanding AUD/USD Market Dynamics
The Australian Dollar (AUD) against the US Dollar (USD) is a major pair that often reflects risk appetite globally. The Aussie is sensitive to:
– **Commodity prices**, particularly metals and agricultural products Australia exports
– **Chinese economic data**, given China is a primary trade partner
– **Domestic economic reports** such as employment, retail sales, and inflation
– **Global risk sentiment** and fluctuations in US interest rate expectations
This pair frequently exhibits pronounced wave patterns, making Elliott Wave analysis a valuable tool for forecasting turning points and potential trend extensions.
## Current Wave Structure: Elliott Wave Perspective
ActionForex.com’s most recent technical breakdown highlights a compelling wave picture on the AUD/USD daily chart. As of the latest update, the pair appears to be constructing a significant corrective structure, following a prior impulsive downtrend that characterized much of late 2023 and early 2024.
### Key Observations:
– **Previous Bearish Impulse**: The AUD/USD fell sharply from levels near 0.6900 late last year, bottoming around the 0.6300 area.
– **Corrective Phase**: The pair is working through a complex correction, likely fitting within an Elliott Wave “ABC” corrective sequence after the impulsive drop.
### Detailed Wave Breakdown
#### Primary Wave Analysis
– The **wave A** of the correction likely terminated at a local peak near 0.6680, representing a classic sharp bounce following oversold conditions.
– **Wave B** appears to have carved out a downward retracement. According to earlier chart points, the retracement stalled around 0.6460, establishing a support base.
– **Wave C** has since begun, driving price action into a recovery phase reminiscent of broader risk appetite improvements and selective US Dollar softness.
#### Sub-Wave Structure
– Within **wave C**, lower timeframe analysis suggests the existence of five minor sub-waves, as is typical with Elliott Wave corrective patterns.
– Current movement (now trading around the 0.6600–0.6650 region) seems to be in the completion stages of wave iii or heading into wave iv of C.
#### Fibonacci Relationships
– The **38.2 percent and 61.8 percent retracement zones** of the broader bearish selloff are acting as notable resistance levels. These are at roughly 0.6600 and 0.6710 respectively.
– The
Read more on AUD/USD trading.