Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
USD Dollar Strength Being Tested (2/16 Video)
- The 1H chart shows the AUD/USD in a rally that broke above a declining trendline. It has also completed 3 waves, then got stuck in a sideways channel between roughly 1.0055, and 1.0018.
- A break above 1.0055 targets the 1.0090 area, as a pattern breakout projection as well as an equality wave projection of the 1st wave up.
- The RSI still remains slightly bearish, although the breach of 60 reflects the bearish momentum having some trouble sustaining as we have this correction rally.
- The 4H chart shows that there was a bearish impulse wave down from 1.0200 to 0.9945.
- Therefore, we are likely in a corrective rally. If the market tops off and breaks below 1.0018 (we should probably look for it to break below 1.0 as well), heading towards 0.9945, it could have completed a 3-wave correction, and the market would be looking at the lower targets,0.9945 then 0.98/0.9750.
- However, if the market breaks above 1.0055 and develops a 5-wave rally, it is likely only the 1st of a corrective rally, and more consolidation should develop before a bearish continuation.
- Keep monitoring the 1.0055 and 1.0018 levels to see which scenario the market is likely to follow.
Is the pullback over now? We would love to hear what you think.