Fortunately, a very notable corrective price pattern is in play that is preparing us for the anticipated rally. The pattern is called a triple or ; it has a place in both analysis and conventional . The chart below shows what the market has in store for AUDNZD .
As visible from the chart above, AUDNZD’s advance from March 25 to April 17 took the shape of five-wave impulse pattern. It is labeled (i)-(ii)-( iii )-(iv)-(v).
Elliott Wave Setup AUDNZD for a Notable Reversal
According to the Wave Principle, a three-wave correction in the opposite direction follows every impulse. This is true for AUDNZD , as the move that follows the rally has been unfolding as an triple pattern, which is almost complete. It’s labeled (w)-(x)-(y)-(x)-(z).
The theory states that once the 5-3 wave cycle is complete, the price heads in the direction of the five-wave sequence. That’s once the wave (z) complete the corrective pattern in play within the blue box on the chart, a rally is expected to resume in wave ((c)).
Wave ((c))’s targets lie above the end of wave ((a)) which makes an advance up to 1.07277 plausible.
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