News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • RT @FxWestwater: Australian Dollar Forecast: Evergrande, PBOC, Risk Trends, BoJ on the Radar Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/21/Australian-Dollar-Forecast-Evergrande-PBOC-Risk-Trends-BoJ-on-the-Radar.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/L0…
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here: https://t.co/t9FlspUVZz https://t.co/9FeeIfuozg
  • The Bank of England should scrap the last of its quantitative easing plans and start preparing for an increase in interest rates. All 9 members of the shadow monetary policy committee said the Bank should end the QE programme early, with almost £50bln left - The Times
  • The Nasdaq 100 gains modestly after Monday's sharp losses, but sentiment remains cautious ahead of the FOMC rate decision. Get your market update from @Tams707 here:https://t.co/HLDN2JGfAf https://t.co/mRhlLUBGq6
  • Ethereum continues its sharp slide, currently down more than 4.7% on the day $ETHUSD #Ethereum https://t.co/BoTAiljU0y
  • Rising energy prices weigh on European policymakers as consumers fear higher prices, carbon dioxide shortages (CO2), and cold winter. Get your market update from @Tams707 here:https://t.co/HLDN2JGfAf https://t.co/tWhlMrXN4G
  • US President Biden: - Will discuss a trade deal with UK PM Boris Johnson - I do not want to see a closure of Irish borders
  • AUD/USD continues to trend lower ahead of tomorrow's FOMC meeting. Further $USD strength could bring the August low into play $AUDUSD https://t.co/X3zfpYN8Qe
  • Nasdaq Ekes Out Small Gain As Focus Turns to FOMC, Uber Flies On Bullish Guidance $NDX $UBER #trading #FED https://t.co/1uL1Ao3o3v
  • Fedex Q1 Results: Revenues: $22.0B vs. $21.8B est. EPS $4.37 vs. $4.92 est. $FDX down roughly 2.25% AH
AUD/USD Wave Relationships Suggest Support Nearby

AUD/USD Wave Relationships Suggest Support Nearby

Jeremy Wagner, CEWA-M, Head of Education

Talking Points

-Commodity currencies have been under pressure for the last few days

-AUD/USD poised to turn higher in wave 4 of 5

-Look for resistance 7860-7940 to anticipate the beginning of green wave 5

To receive future articles via email on trading ideas using equal waves, Elliott waves, and triangle patterns, click HERE and enter your email information.

Since the Bank of Canada came out with their surprise rate cut last week, the commodity currencies have been under pressure including AUDUSD.

Two weeks ago, we laid out 3 different wave counts with the favored count showing purple wave 4 resting place in the 8250-8300 range. Prices did reach the range and now appear to be falling in purple wave 5.

As we inspect the Elliott Wave pattern of this ending wave (purple wave 5), we look for five waves to subdivide inside of it. It appears we have just finished green wave 3 as there are three different wave relationships and a price channel suggesting support in the 7740-7795 price zone.

If this wave count is correct, prices may have one more up-down sequence to finish purple wave 5 (see idealized pattern below).

AUD/USD Wave Relationships Suggest Support Nearby

As a result, anticipate green wave 4 to bounce higher near 78-79 cents. If a reversal lower is successful near 79 cents, prices likely are to revisit the recent lows of 77 cents.

There are a couple of other possibilities we are keeping in mind. It is possible that green wave 5 and purple wave 5 are finishing now. A meaningful break above 80 cents will tip the hand to that count.

Also, continued movement lower without an upward retracement suggests that purple wave 5 continues to extend lower perhaps to 74 cents.

Other Recent Elliott Wave Counts:

USDCAD Extends Higher on Surprise Rate Cut (10 minute video)

Gold and a Bullish Elliott Wave Count (5 minute video)

Elliott Wave Analysis for EUR/GBP (6 minute video)

Not sure what an equal wave pattern is? Watch this 10 minute video.

Additional tools to identify levels and sentiment on AUDUSD:

Instant Support and Resistance Levels, a Simple Must_have Tool (article)

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.

DISCLOSURES