Australian Dollar/U.S.Dollar (AUDUSD) 4 Hour Chart Elliott Wave Technical Analysis 02 August 23

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AUDUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart, 02 August 23

Australian Dollar/U.S.Dollar (AUDUSD) 4 Hour Chart

AUDUSD Elliott Wave Technical Analysis

Function: counter Trend

Mode: impulsive

Structure: Subwave 5 of C

Position: Black Wave 2  

Direction Next Higher Degrees: wave (3 ) of Motive  

Details: Blue wave 5 of C of corrective Black wave 2 in Play. Black Wave “2” end above 0.64581. New up trend for Black 3rd wave confirmation level at 0.67397. Wave Cancel invalid level: 0.64581

On 2nd August 23, the 4-hour chart of the Australian Dollar/U.S. Dollar (AUDUSD) pair is analyzed using Elliott Wave theory, revealing a counter-trend movement with an impulsive mode. The function of the price movement is identified as counter-trend, while the mode is characterized as impulsive.

The current structure is recognized as Subwave 5 of C, with the position of the price wave designated as Black Wave 2. The projected direction for the next higher degrees is wave (3) of a larger Motive wave pattern.

The analysis provides further details, indicating that Blue wave 5 of C, which is part of the corrective Black wave 2, is currently in play. Traders and investors are advised to closely monitor the market, as Black Wave 2 is expected to conclude above the level of 0.64581.

It is essential to note that the wave count provided will lose its validity if the AUDUSD price falls below the level of 0.64581.

As of the specified date, 2nd August 23, traders in the AUDUSD market should closely observe the counter-trend impulsive movement and wait for confirmation of the end of Black Wave 2 before considering potential trading opportunities. Counter-trend trading involves higher risks, and traders should exercise caution and implement effective risk management practices.

The analysis also suggests the potential for a new uptrend to begin after the completion of Black Wave 2. Confirmation for the start of Black Wave 3 is expected at the level of 0.67397. This implies the possibility of a strong upward directional move in the AUDUSD market once the corrective phase concludes.

While Elliott Wave analysis provides valuable insights into potential market patterns and price movements, traders should supplement it with other technical indicators and fundamental factors to develop a comprehensive trading strategy. Market conditions can change rapidly due to various factors, including economic data releases, geopolitical events, and shifts in market sentiment. Therefore, traders should remain attentive and adaptable to changing market conditions.

Proper risk management practices are essential in all trading endeavors to protect capital and manage potential losses. By staying informed and utilizing a well-rounded approach to trading, traders can make more informed decisions and enhance their trading performance in the dynamic foreign exchange markets.