Hi Traders,
The AUDUSD is going through a wave configuration that could ultimately lead to 2 very different outcomes. Let's see what's the situation.
At the first glance, the monthly and weekly charts below seem to display a completion of all waves down, setting the stage for a major reversal.
In fact the weekly chart shows a group of 3 "fives" at the bottom right. This is normally a sign that a downtrend ended and a new uptrend just started over.
However, a more careful examination of the daily and 4-hour charts reveals a tricky situation: although the AUDUSD is actually moving up, this could lead to two different outcomes:
As much depends by the current wave labeling in the daily, 4-hour and 1-hour charts below, I provided below 2 separate interpretation of the daily and 4-hour charts, named:
CONCLUSION
At present, case one displayed in the daily-chart-1, the 4-hour-chart-1 seem the most sensible interpretation of the wave sub-division and so the target at 0.85.
This seems to be confirmed by the wave sub-division of the 1-hour chart below.
However, Let's keep an open mind.
PS: I'm trying to convert my newsletters into videos but I'm still learning. I'll let you know.
In fact the weekly chart shows a group of 3 "fives" at the bottom right. This is normally a sign that a downtrend ended and a new uptrend just started over.
However, a more careful examination of the daily and 4-hour charts reveals a tricky situation: although the AUDUSD is actually moving up, this could lead to two different outcomes:
- case one: the new major uptrend started already and the Aussie dollar is heading to 0.85.
- case two: this is just a temporary uptrend that is heading only to 0.7849 and reversing down.
As much depends by the current wave labeling in the daily, 4-hour and 1-hour charts below, I provided below 2 separate interpretation of the daily and 4-hour charts, named:
- daily chart 1
- daily chart 2
- 4-hour chart 1
- 4-hour chart 2
CONCLUSION
At present, case one displayed in the daily-chart-1, the 4-hour-chart-1 seem the most sensible interpretation of the wave sub-division and so the target at 0.85.
This seems to be confirmed by the wave sub-division of the 1-hour chart below.
However, Let's keep an open mind.
PS: I'm trying to convert my newsletters into videos but I'm still learning. I'll let you know.
Monthly Chart - Click to enlarge
Weekly Chart - Click to enlarge
Daily Chart 1- Click to enlarge
Daily Chart 2 - Click to enlarge
4-hour Chart 1 - Click to enlarge
4-hour Chart 2 - Click to enlarge
