Today we will talk about AUDUSD currency pair; its price action from a technical point of view, and structure from the Elliott Wave perspective.
Aussie made a five-wave decline on a daily chart into wave A, which can find the base here, around important 0.7000 support zone, especially if we take a look at the 4-hour chart where we see five sub-waves down within wave 5 of A with RSI divergence which normally suggests that bears are losing strength.
Aussie is actually already coming nicely higher for the last few sessions, now approaching the channel resistance line, which can be taken out this week on some optimism after RBA comments that "The omicron is not expected to derail the recovery". At the same time, we see stocks also moving nicely higher, now in risk-on which can be positive for hte pair.
If we are on the right track, then Aussie can be at the start of a higher degree recovery. However, for now we may see a minimum three-wave (A/1)-(B/2)-(C/3) rally towards 0.72 area or even higher. We assume that intraday setbacks can be interesting.
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.