FX.co ★ Elliott wave analysis of AUD/USD for December 23, 2020

The Aussie dollar has rallied nicely from the March 2020 low at 0.5506 and completed a five wave rally at 0.7414.

After the wave 1 peak, we have seen wave A and B of an expanded flat correction and wave C has likely begun or will begin very soon for a decline towards 0.6822.

Short-term a break below 0.7458 will confirm that wave C is unfolding for the final decline in wave 2. If a final spike is made in wave B it could be close to of just above 0.7640 before tuning lower in wave C towards 0.6822.

Trading recommendation:

If you are long Sell near 0.7640 or use a protective stop+revers at 0.7458 for a decline to 0.6822