AUD/USD: wave analysis 18 February 2021, 08:43

AUD/USD: wave analysis

18 February 2021, 08:43

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	0.7755
Take Profit	0.7900, 0.8100
Stop Loss	0.7700
Key Levels	0.7308, 0.7410, 0.7579, 0.7900, 0.8100

Alternative scenario
Recommendation	SELL STOP
Entry Point	0.7575
Take Profit	0.7410, 0.7308
Stop Loss	0.7635
Key Levels	0.7308, 0.7410, 0.7579, 0.7900, 0.8100

The pair may grow.

On the daily chart, the first wave of the higher level (1) of C develops, within which the third wave 3 of (1) formed. Now, a local correction has developed as the fourth wave 4 of (1), and the formation of the wave 5 of (1) has started, within which the wave i of 5 has formed. If the assumption is correct, after the end of the correction ii of 5 the pair will grow to the levels of 0.7900–0.8100. In this scenario, critical stop loss level is 0.7579.

Main scenario

Long positions will become relevant during the correction, above the level of 0.7579 with the targets at 0.7900–0.8100. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 0.7579 will let the pair go down to the levels of 0.7410–0.7308.