Shorts Closed, Ready for a Wolfe Wave Setup - AUDUSD
The recent down move in the Aussie has been crawling and creeping and not powerful at all.
The reason might be because of the holidays and inadequate fundamental news but the result of all has formed a Diagonal.
Depending on different counts we might consider it a leading diagonal or an ending diagonal, but it doesn't matter for now which one it is, as we're expecting a sharp correction to the upside for all kinds of diagonals.
I've marked a Fib_Cluster for the possible termination of the diagonal (The zone was so tight, it formed a line).
The invalidation point is where the wave 5 gets bigger than wave 3.
For the targets I have used both Wolfe Wave rules and Fibonacci Retracement and found a convergence which would give both Time and Price of the target.
This method has already worked on the EURUSD Wolfe Wave idea.
I will post updates as soon as the market opens and we see more developments of this pattern.
The reason might be because of the holidays and inadequate fundamental news but the result of all has formed a Diagonal.
Depending on different counts we might consider it a leading diagonal or an ending diagonal, but it doesn't matter for now which one it is, as we're expecting a sharp correction to the upside for all kinds of diagonals.
I've marked a Fib_Cluster for the possible termination of the diagonal (The zone was so tight, it formed a line).
The invalidation point is where the wave 5 gets bigger than wave 3.
For the targets I have used both Wolfe Wave rules and Fibonacci Retracement and found a convergence which would give both Time and Price of the target.
This method has already worked on the EURUSD Wolfe Wave idea.
I will post updates as soon as the market opens and we see more developments of this pattern.
