Currency Markets Insights:
– The US Dollar DXY remains bearish as precious metals trade higher.
– Per Elliott wave analysis, the Aussie Dollar (AUDUSD) is consolidating within a higher degree uptrend.
Markets did not move much for the last few weeks, so a lot of structures remain unchanged. This is especially so on higher degree time frame charts. We see weakness in the USD which may continue after small retracements.
Looking at the Aussie, we are seeing a very nice potential bullish formation within a higher degree uptrend which may not be finished just yet. The AUDUSD may find some short-term resistance due to new covid cases in Australia, and still no tapering from the RBA. However, prime minister Scott Morrison called for Victoria to come out of lock-down “as soon as possible” which sounds positive for the economy in the weeks ahead.
On the 4-hour chart, the Aussie AUDUSD is still slow and overlapping as the consolidation phase plays out. Ideally, it’s a complex correction that turns into a triangle or maybe even a flat (if we consider the first two legs); waves B and A unfolded in three waves. That being said, traders need to be aware of more sideways price action before the Aussie finally breaks out of this consolidation.
AUDUSD 4-hour Elliott wave Analysis chart
What is also important for AUDUSD is to keep an eye on metals after recent turn up on gold and silver where both are pointing to higher prices after pullbacks. For more details please check our video below, where Grega covers Aussie and Silver.
Finally, another ELLIOTT WAVE OPEN DOOR Event is here. See all of our charts FREE for 10 days. Join us at Elliot Wave Forecast!
Video – Elliott Wave Analysis AUDUSD and Silver!
The authors may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.