FX.co ★ Elliott wave analysis of AUD/USD for August 6, 2021

The Aussie dollar has corrected nicely into the corrective target zone between 0.7289 - 0.7394. This decline is followed by bullish divergence indicating a clear loss of corrective momentum, so a new impulsive rally should start soon.

We will be looking for a break above 0.7503 as an indication that wave 2/ has completed and wave 3/ higher towards 0.8849 is in progress. It's possible that strong resistance near 0.8135 will be able to prevent wave 3/ in unfolding directly higher towards 0.8849. Instead there is a more complex wave 2/ unfold for a second corrective dip 0.7155 before the next impulsive rally higher, but only time will show. For now, we should be looking for a break above minor resistance at 0.7503 for a rally close to at least 0.8135 and then let's see what happens.