Monday, 15 January 2018

The Aussie Dilemma

Hi Traders,

The Aussie (now at 0.7956) might top in the area 0.7940-0.7996. This top should trigger a retracement to 0.78-0.77.  BTW, what is expected afterward might be debatable. Let's see why.


On the right-hand side of the monthly and weekly charts there is an a-b-c-d followed by 4 waves in green. Apparently, the AUDUSD is trying to unfold wave 5 (in green) which would complete the a-b-c-d-e as well as wave 4 (in red).

This means that, after the retracement above mentioned, the Aussie could actually resume the uptrend to 0.85-0.86 or even to the 0.92-0.95 area.

The daily chart displays the four legs (in blue) and the target at 0.7940-0.7996. It also shows that wave 4 is made of 7 smaller waves, which is equivalent to a 3 waves system. This confirms that this is a typical wave 4.

Consequently, after the top at 0.7940-0.7996 and the subsequent retracement to 0.78-0.77, there could be a rally to 0.85-0.86 or even to the 0.92-0.95 area.

Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hours chart, click to enlarge

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