AUD/USD remains under bearish pressure on the 4-hour chart, trading near 0.6957 after reaching 0.69037. The Elliott Wave count shows that the decline from the wave ii high developed through a complete five-wave impulse, labeled ①-②-③-④-⑤. Wave ⑤ terminated at 0.69037, completing the larger-degree wave iii and opening the door for a corrective wave iv recovery.
AUD/USD Elliott Wave Analysis: Wave iv Corrective Recovery
The completion of wave iii is supported by the five-wave subdivision visible from the wave ii high. The initial rebound from 0.69037 is labeled wave Ⓐ, representing the first leg of the developing wave iv correction. Price is now expected to retrace in wave Ⓑ before another advance in wave Ⓒ completes the corrective structure.
At this stage, the developing A-B-C sequence favors a zigzag-type correction, although the pattern should remain provisional until its internal structure is complete. The chart projects wave iv toward approximately 0.6990–0.7000, an area that could become important resistance.
The broader trend remains bearish. Once wave iv is complete, the Elliott Wave structure favors the start of wave v, which would resume the larger decline and could drive AUD/USD below 0.69037 toward fresh lows.
- Primary outlook: corrective upside in wave iv before the broader bearish trend resumes through wave v.