AUD/USD Carves an Equal Wave Pattern
-The January 14 Equal Wave pattern provides clues to the overall structure
-Break above the channel suggests 8250-8300 target
-Break below 8066 may suggest an ending diagonal towards 79 cents
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The goal of this article series is to help you identify key price levels that govern certain wave relationships so you can establish your game plan prior to the moves taking place.
The video above lays out three probable scenarios for the AUDUSD. From a bigger picture perspective, the next move lower towards 79 cents is an important move and likely purple wave 5. If that scenario holds, then purple wave 5 would be an ending wave of the purple wave sequence suggesting a longer term turn higher from slightly lower levels.
Not sure what an equal wave pattern is? Watch this 10 minute video.
Additional tools to identify levels and sentiment on AUDUSD:
The DailyFX Plus Technical Analyzer (free registration required)
Speculative Sentiment Index (free registration required and provides access to the Technical Analyzer too)
-Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
Follow me on Twitter at @JWagnerFXTrader .
See Jeremy’s recent articles at his DailyFX Forex Educators Bio Page.
This article uses Fibonacci ratios to follow a variety of patterns including Elliott Wave. To learn more about Fibonacci ratios, register to take this free 20 minute on demand course. Register here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.