FX.co ★ Elliott wave analysis of AUD/USD for July 21, 2022

AUD/USD is currently completing the corrective wave 2. Once complete, we should see wave 3 take over for the next impulsive rally towards at least 1.0255. From a classical technical analysis point of view, we see an S/H/S bottom that will be activated upon a break above the neckline resistance at 0.8000. This bottom formation also calls for a rally towards 1.0255.

Short-term we would like to see a break above minor resistance at 0.7069 that will be a strong indication that wave 2 has been completed and wave 3 is in progress.