AUDNZD - BUY IDEA

On the AUD/NZD 2-hour chart, the price action is displaying an Elliott Wave pattern, indicating a potential end to the recent bullish momentum. We can see a completed five-wave structure labeled (1) through (5), suggesting the completion of an impulsive wave cycle. This is typically followed by a corrective ABC pattern.

At present, it appears that wave (a) of the correction is complete and wave (b) is potentially forming. In Elliott Wave theory, after wave (b), we would expect wave (c) to unfold, possibly taking the price lower. The dotted blue lines forecast this potential path, with the Fibonacci retracement levels providing possible support zones for wave (b) and targets for wave (c).

The retracement level at 0.618 of wave (b) is of particular interest as a significant turning point for wave (c). Keeping an eye on this level may offer insight into the strength and potential endpoint of the corrective phase.

In deploying this analysis into a trading strategy, it's important to use other forms of technical analysis for confirmation, consider economic news that may impact currency movements, and employ sound risk management practices. As the pattern develops, I will remain flexible and ready to adjust my analysis to align with the evolving market structure.

Trade closed: target reached