AUD/USD: wave analysis

3 thg 1, 2018

The pair is expected to reduce.

The development of upward correction is likely to have finished within the H4 timeframe as the second wave 2 of (5) of the upper level that is zigzag-shaped. Locally the reversal of the price seems to be forming. If the supposition is correct, one may expect the pair to reduce to the level of 0.7653. A critical level for this scenario is 0.7844.

Main scenario

Short positions are relevant from corrections below the level of 0.7844 with targets at 0.7653.

Alternative scenario

A breakout and consolidation of the price above the level of 0.7844 will allow the pair to continue growth to 0.7886 and above.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 0.7816
Take Profit 0.7653
Stop Loss 0.7875
Key Levels 0.7653, 0.7844, 0.7886

Alternative scenario

Recommendation BUY STOP
Entry Point 0.7850
Take Profit 0.7886
Stop Loss 0.7815
Key Levels 0.7653, 0.7844, 0.7886