Elliott Waves On AUDUSD: Short-term Dirrection Is Pointing Higher
The Aussie (AUDUSD) is currently in an uptrend this week, making five waves up from the 0.6363 low, establishing this as our invalidation level. As long as this level is not breached, we expect further upside for AUDUSD. It's notable that inflation data from Australia this week exceeded expectations, reducing the likelihood that the Reserve Bank of Australia will cut rates in their next meeting.
Additionally, stock markets have shown signs of recovery; Chinese stocks have bounced back this week, and US indices also rallied at yesterday's close. This improvement in market sentiment suggests that the risk-on mood could continue into the end of this week and possibly into next, supporting the Aussie's recovery.
From a near-term perspective, more gains are anticipated for AUDUSD, though there could first be a three-wave ABC retracement. A strong support level to watch during any near-term dips would be around 0.6480.
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On the date of publication, Gregor Horvat did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
