Elliott Wave: Wedge on Aussie, be aware of recovery if 0.6545 is broken

Gregor Horvat Wavetraders

Aussie is holding up well for the last session or two, despite worse-than-expected jobs data reported from Australia. So I think that support on aussie holds due to some weakness on US yeilds and higher stocks. Looking at the Elliott wave pattern, thats a very nice wedge since end of January, which is known as a reversal pattern. Ideally, this one can prove a sharp turn in price, especially when upper resistance line and fourth wave swing zones area breached. I think that if US yeilds will hold current resistance levels and if aussie can regain to 0.6545 by the end of the week, that pair has more upside potential going into next week. So as long the critical area of resistance is not breached, just be aware that new low can still show up.

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Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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