AUDUSD is looking bullish after yesterday's sharp rally which was most likely wave three of a five wave rally in black wave 3. Wave 3 must be made by five smaller waves so we favour more upside on AUDUSD, towards 161.8%; a typical third wave target measured from waver 2 low. With that said, current slow price action around the high is most-likely wave (iv) in 3, so break higher could follow very soon into wave (v). Nice support comes in around 0.9460 from where any long positions could be considered, but stops should then be below 61.8%. If new high will occur then new opportunity should be in wave 4 of one larger degree.
AUDUSD 1h
AUDUSD 1h
IMPULSE:

Impulse is the most common motive wave. Most impulses contain what Elliott called an extension. An extension is an elongated impulse with exaggerated subdivisions. The vast majority of impulses contain an extension in one and only one of their three actionary subwaves.
Impulsive
 
  • wave 1 must be an impulse or a leading diagonal
  • wave 2 can be any corrective pattern except a triangle
  • wave 2 must not retrace more than 100% of wave 1
  • wave 3 must be an Impulse.
  • wave 3 must be longer than wave 2
  • wave 4 can be any corrective pattern (zig-zag, double or triple zig-zag, triangle, flat, double or triple three)
  • waves 4 must not trade into a territory of a wave 1
  • wave 5 must be an impulse or an ending diagonal
  • wave 3 must never be the shortest wave when compared to waves 1 and 5.