AUD/USD: wave analysis

The pair may fall.

On the 4-hour chart, an upward correction of the higher level develops as the wave 2 of (5). Now the wave b of 2 is forming, within which the wave (c) of b is developing. If the assumption is correct, the pair will fall to the levels of 0.6920–0.6830. In this scenario, critical stop loss level is 0.7198.

Main scenario

Short positions will become relevant during the correction, below the level of 0.7198 with the targets at 0.6920–0.6830. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 0.7198 will let the pair grow to the level of 0.7387.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 0.7030
Take Profit 0.6920, 0.6830
Stop Loss 0.7130
Key Levels 0.6830, 0.6920, 0.7198, 0.7387

Alternative scenario

Recommendation BUY STOP
Entry Point 0.7205
Take Profit 0.7387
Stop Loss 0.7145
Key Levels 0.6830, 0.6920, 0.7198, 0.7387