Aussie is making a January pause due to a corrective slow down within bullish trend from Elliott wave perspective.
Aussie has been bearish in the first part of 2023, but notice that pair might have completed deeper three-wave decline on a daily chart, followed by a current nice turn-up with higher highs and higher swing lows shown on 4h time frame, where price also recovered out of a big downward corrective channel, connected from 2023 highs.
That said, I assume that a bottom can be forming. In fact, we can see a nice five-wave bullish impulse in the 4-hour chart, which is a strong signal that bulls are back on track, but keep in mind that nothing moves in a straight line and that pair can be making an A-B-C pullback now in January as intraday weakness from 0.6880 looks like a first wave A of a three wave retracement. Ideally, pair will stabilize around 0.660 area where daily trendline can become a nice support for the current higher degree wave 2.
Also, RBA is much more hawkish than the FED, RBA even considered a 25bp increase so there are speculations for FED to cut rates this year. So this is definitely something that can keep Aussie uptrend alive.
Trade well,
Grega
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