Aussie Recovers After Wave C Drop as Inflation Data Lifts Rate Outlook

AUDUSD continues to respond to both macro data and technical structure, and the latest price action warrants a closer look before outlining the full outlook. Let’s take a look at what we sent out to our members 21st of November, 6 days ago before we saw the price increase:

“AUDUSD is coming lower, breaking the trend line support, so obviously, we are dealing with a potential wave C in progress that does not look completed yet. Levels around 0.6400 could be very important, especially since this is the swing support from the August 21 lows. If we were to see a rebound from that area in five waves, then I would even consider some dollar shorts, especially if stocks also see a rebound. That is not happening now, but it’s good to be prepared if the market confirm the bottom, based on our expectations”
 

For more, you can visit us at wavetraders.com where you can enjoy all of our analysis on FX, Stocks, Metals, Crypto etc.

It did not take long for the pair to find support in 0.64 region. This is what we sent out yesterday, 26th of November:

“Aussie is recovering very nicely after inflation in Australia came out hotter than expected, meaning there are now fewer chances for potential rate cuts, so any signals from the Australian central bank that they will stay on hold will make AUD much more attractive, especially now when rate-cut expectations for December in the US are increasing. So apparently Aussie could see more strength in line with the S&P 500, confirms the bullish intraday trend once the price passes the …… resistance” – for todays update, check out our member area!

Thank you for reading!