4 hour or 1 hour
Today we look at Aussie/dollar pair, I believe that we have started wave 4 of wave 5 in a longer time frame, I’m expecting wave 4 to end around 38.2% retracement of wave 3 at around 0.74473 to 0.74915. It can go higher as long as it still within Elliot wave rules, below 0.75579 where wave 1 ended. Remember the rules wave 4 must not come to price area of wave 1 unless we have diagonal wave 5 which is not the case here.
Looking at longer time frame (D or W)
Longer time frame wise we expecting the start of 3 correction waves A, B, C after the finish of wave 5, so the bulls are getting ready as we speak to move the market at least 3 waves up. The weekly chart above shows the channel of AUD/USD if the price breaks below the channel we will know we in wave 3 or it will bounce in the channel and go up to complete wave (y). We are at the critical point in the market where the decision will be made soon which way the market is moving. Trade careful guys. If you liked this analysis please share this post.