Aussie Makes A January Pause; Bullish After Correction Is Done
Aussie has been bearish in the first part of 2023, but notice that pair might have completed deeper three-wave decline on a daily chart, followed by a current nice turn-up with higher highs and higher swing lows shown on 4h time frame, where price also recovered out of a big downward corrective channel, connected from 2023 highs.
That said, I assume that a bottom can be forming. In fact, we can see a nice five-wave bullish impulse in the 4-hour chart, which is a strong signal that bulls are back on track, but keep in mind that nothing moves in a straight line and that pair can be making an A-B-C pullback now in January as intraday weakness from 0.6880 looks like a first wave A of a three wave retracement. Ideally, pair will stabilize around 0.660 area where daily trendline can become a nice support for the current higher degree wave 2.
Also, RBA is much more hawkish than the FED, RBA even considered a 25bp increase so there are speculations for FED to cut rates this year. So this is definitely something that can keep Aussie uptrend alive.
Dont forget on NFP today!
Trade well,
Grega
That said, I assume that a bottom can be forming. In fact, we can see a nice five-wave bullish impulse in the 4-hour chart, which is a strong signal that bulls are back on track, but keep in mind that nothing moves in a straight line and that pair can be making an A-B-C pullback now in January as intraday weakness from 0.6880 looks like a first wave A of a three wave retracement. Ideally, pair will stabilize around 0.660 area where daily trendline can become a nice support for the current higher degree wave 2.
Also, RBA is much more hawkish than the FED, RBA even considered a 25bp increase so there are speculations for FED to cut rates this year. So this is definitely something that can keep Aussie uptrend alive.
Dont forget on NFP today!
Trade well,
Grega
