AUDUSD Weekly analysis
AUDUSD has ccompleted a very pretty A and a B wave, and the C wave is currently in progress. What’s more interesting is that all this is happening in the weekly chart. Which means we will be in the bull market for the foreseeable future. Having said that, this is actually the correction of a rather bigger monthly-bearish-trend.
Isn’t it the perfect A and B wave? Hopefully the C wave too will be visually appealing. Which will in turn provide some beautiful trades in lower timeframes.
Upper boundary of B wave should provide some resistance. But it should not be the turning point for the wave 5(monthly bearish trend) to continue. At most, it will be a pullback of the wave C. At least this is my expectation as elaborated by the green lines.
As seen onn the TradePips custom indicator there is potential for the blue line to reach the top black line and the red line to reach the bottom black line. The estimation would be that when either of this black lines get touched or breached the price should be around the upper boundary of the B wave. This is where the pull back should occur. Remember the expectation is a pullback and not a complete reversal.
Pullback demonstrated by the green line in the weekly chart is just an elaboration and does not hold any value in terms of distance or time. Having said that, it could be very short-lived if the wave C too would continue to be strong creating a very similar wave to that of wave A.
Depending on where the actual resistance will come to effect, pullback is expected to be at least 38.2% retracement of whatever the length of the wave C by then. For now the forecast is for price to reach the highest high of wave B before the pullback happens.