Price has bounced up and reached our profit target perfectly. We prepare to buy above 0.7377 support ( Fibonacci retracement
, horizontal overlap support) for a further push up towards 0.7441 resistance ( Fibonacci retracement
, horizontal pullback resistance, Elliott wave
(34,5,3) has made a bullish
exit and sees further upside potential.
Correlation analysis: AUD/USD
has a strong positive correlation with NZD/USD
which means they usually move together. We are expecting a rise on AUD/USD
and a drop on NZD/USD
so it is best to exercise caution on these trades.