AUD/USD Bearish Impulse Tests Support of Daily Uptrend Channel

Chris Svorcik Elite CurrenSea

Meta: AUD/USD broke above the long-term resistance trend lines. Is it a bullish reversal or will the bears regain control?

Daily chart

The AUD/USD will be able to confirm the next direction depending on its reaction at the support line (blue) of the uptrend channel. A strong bullish bounce (green check) makes an uptrend likely whereas a bearish breakout would invalidate (red x) the current wave outlook.

4 hour chart

The AUD/USD made a deep retracement, which seems to have unfolded in an ABC (pink) zigzag pattern. A bearish breakout below the 100% FIbonacci level of wave 2 vs 1, however, invalidates (red x) the bullish wave pattern and indicates a downtrend. In that case, price made a bullish ABC rather then a 1-2 pattern. A bullish breakout, bounce, and continuation could make an uptrend more likely (green check).

The analysis has been done with the CAMMACD.Core System.

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Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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