E AUD/USD Elliott Wave Forecast: Bullish Contracting Triangle

AUD/USD Elliott wave analysis by readyforex.com


The trend is bullish in AUD/USD currency pair, 30 minutes time frame. As I have suggested a few hours ago during my daily Live Trading Room session, the price of AUD/USD pair is going to drop now on a short-term basis to print a corrective bearish wave e leg and traders should look for a sell trade. Strong key support level is present at 0.7575 price level.

In my judgment, price action in AUD/USD currency pair is now going drop more to complete the bearish pullback – wave e leg. Based on Elliott wave, the sideways price action looks like a Bullish Contracting Triangle pattern. So, I expect the market to resume the up-trend after completing bearish wave e final leg.

Currently, bearish wave e leg looks in-completed. So, first wait outside of the market and allow price action to drop more. Next, look for a possible bullish breakout in price action which will take the price of AUD/USD currency pair out of triangle pattern. The bullish move out of triangle patterns offers a potential Long trading opportunity to join an up-trend. However; if the price of AUD/USD breaks below 0.7575 vital support level then up trend is going to end. In such a market scenario, it would be best not to trade the market and re-analyze the AUD/USD 30 minutes chart.

Disclaimer: Forex trading involves significant risk of loss. The high degree of leverage can work against you as well as for you. The possibility exists that you could sustain a loss of some or all ...

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