We’ve been on top of Aussie’s market price action – let’s dive in and see how we navigated the market in choppy sideways range, as usually sideways range is a meat grinder for traders.
Our analysis go back to 6th of January, as we have marked the potential for developing flat correction, which is more vivid now:
“Aussie slowed down around the 0.67 area, which was the high from September 2025, a very important and strong resistance. From that level we can see only three waves down so far, which suggests this is still a corrective move. However, it also looks like this correction could become longer and more complex than initially expected, possibly even with a flat structure. This is something to be aware of within a higher degree black wave two”
As we can see, our projection for slow price action have been met by the market. Going forward, 7th of January, AUDUSD made sharp reversal in potential wave B, hitting just above December highs – which acted as a strong resistance and price action turned south. Here is a snippet from the daily update:
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“Despite Aussie printing new highs, we have to keep in mind that inflation came in below expectations, so this move to the upside could be temporary. I am still watching whether we get an overlap back below 0.6700, which would allow and confirm a move lower into a more complex wave two, possibly unfolding as a flat.”
Fast forward into the next day, and we saw a strong rejection off of the highs, which adds more odds in our favor that this is a sideways flat correction in play. At the end of the last week, we sent out this update and for todays update, check out our members area to see if this flat correction is still in play or did the market favor different pattern
“Despite the strong push higher on AUDUSD at the beginning of the week, we are now seeing a very interesting reversal, as discussed earlier. We know that especially at the start of a new year, and during the first week of January, different flows often dominate before the market later finds its real direction. Now that Aussie is falling back below the 0.6700 level we talked about yesterday, it confirms the idea that a higher degree, complex wave two correction is still underway. In flat corrections, the most important support usually comes at the previous wave A swing low, which in this case is around the 0.660 area. That suggests there is still room for more weakness before the market can find some stabilization”
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