Hello everyone.

We hope everyone had a great weekend. Let’s check in on our friends from down under and pull up the AUD/USD.

We looked at the longer term charts to get the overall picture and have focussed in on the 30 minute chart.

As you can see, we are starting to consolodate and move sideways - which means that a breakout is coming soon. We have drawn trendlines that show a potential triangle forming.

If the pair breaks the bottom black line, then look for it to head down and test the low from 12/18. If the pair breaks the top of the triangle and the high from 12/22), look for it to potenially re-test the high from 12/18, If it breaks that high, then look for continued bullish sentiment until we begin to see a slowing of the trend.

Good luck and be sure to utilize your own money management.

Greetings.

This chart should look very familiar to you as this was the one I put up yesterday. As I have mentioned in the past, when you combine a good mixture of technicals together and they all flow together, you get some pretty high probability trades.

I knew I was looking for a ZZ Wave 3. I also had a contracting triangle which is great for showing a continuation of the trend. So, even if my count was wrong, I knew i had a better probable chance of being correct because I matched it up with a triangle. If you entered at the market price shown on the chart 0.8239, you’d be up more than 150 pips as current price is about 0.8406.

The reason for this post is not to toot my horn about being correct. I can give you plenty of trades throughout my career where I was completely wrong. The point here is that I used two types of analysis (Elliott Wave and a Contracting Triangle) to increase my probability that this trade was correct. There is no one magic formula to the markets, however, you can increase your probability of being correct. Keep researching, develop a trading plan and stick with it, always remembering this is a dynamic market and you must change with the times.

We do have a few more of these similar patterns forming in the market right now. They are not complete but when they do arise, I will be sure to post them.

Good luck and we’ll see everyone again shortly.