Today, we take a look at AUDJPY structure in order to get clues for future price action in other Australian dollar (AUD) cross pairs. AUDJPY is showing five swings up from the 88.17 low, which, when taken with the 91.07 low, comes as a bullish signal and favors another leg higher.
We believe the broader AUD cross pairs would remain bullish until AUDJPY reaches the 97.33 – 98.09 area. As such, expect a higher AUDUSD following a pullback, as well as downward price action in both EURAUD and GBPAUD after recovery phases.
In short, traders should not look to take short AUD positions until AUDJPY has extended above the defined risk area.
By Eric Morera of Elliottwave-Forecast.com
