Hello traders and investors, today we want to update SP500 and AUDUSD charts. We actually see them finishing a correction and approaching strong and important support zone.
As you can see on the left correlation chart between SP500 and AUDUSD, always when Aussie finds the support, we see SP500 stabilization.
Well, if we take a look on the right Aussie chart from Elliott Wave perspective, we can clearly see an Elliott wave corrective movement, ideally a complex (W)-(X)-(Y) decline. We are already tracking final wave (Y), but it has to be finished in three legs A-B-C. As you can see, wave C of (Y) is still missing.
From technical point of view, ideal support for SP500 is here around 4000 level, maybe slightly lower. Meanwhile Aussie may retest 0.68 support zone before we will see a bullish reversal.
So, if we are on the right path, then stocks might find the support soon as we see Aussie in final stages of a corrective decline. Final leg may also occur as a spike down like back in March 2020 and January 2019.
Happy trading!
While Aussie Finishing Correction, Stocks Approaching Support by ew-forecast on TradingView.com
Stocks are nearing strong support zone. If you are interested in single stocks, you can check our NetFlix chart CLICK HERE