A Closer Look At AUDUSD After Latest RBA Hike
<p>Six months ago, in early-December, 2022, we wrote a <a href="https://ewminteractive.com/audusd-surge-25-percent-next-year" target="_blank" rel="noreferrer noopener">comprehensive analysis</a> of AUDUSD. It included our <a href="https://ewminteractive.com/elliott-wave-principle-infographics" target="_blank" rel="noreferrer noopener">Elliott Wave</a> interpretation of the pair’s historical, weekly and daily price charts. Gladly, six months later now, <strong>this analysis is still valid</strong>. </p>
<p>Earlier today, the <a href="https://www.theguardian.com/australia-news/2023/jun/06/rba-interest-rates-reserve-bank-increases-cash-rate-by-25-basis-points-in-attempt-to-quash-inflation" target="_blank" rel="noreferrer noopener">RBA raised its cash rate</a> to 4.1%, its highest level in 11 years. The hike grabbed traders’ attention, who then pushed AUDUSD sharply higher. The Reserve Bank of Australia also stated that further rate increases may be needed to bring inflation down. This bodes well for the Aussie bulls and also supports the mid-term positive outlook we shared with readers in late-2022. Today, we’ll see that the pair’s short-term prospects now look bullish, as well.</p>
<figure><a href="https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update.png"><img decoding="async" loading="lazy" width="1220" height="984" src="https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update.png" alt="AUDUSD bounces up from Fibonacci support" class="wp-image-24951" srcset="https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update.png 1220w, https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update-868×700.png 868w, https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update-768×619.png 768w, https://ewminteractive.com/wp-content/uploads/2023/06/AUDUSD-Short-Term-Elliott-Wave-Update-600×484.png 600w" sizes="(max-width: 1220px) 100vw, 1220px" /></a></figure>
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<p>The 4-hour chart of AUDUSD reveals that the recovery from 0.6170 to 0.7158 can be marked as a <a href="https://ewminteractive.com/elliott-wave-patterns" target="_blank" rel="noreferrer noopener">five-wave impulse</a>. The pattern is labeled 1-2-3-4-5, where the five sub-waves of wave 3 are also visible. This impulse in wave (1) was followed by a simple a-b-c zigzag in wave (2) down to the 61.8% <a href="https://ewminteractive.com/leonardo-fibonacci-and-the-golden-ratio" target="_blank" rel="noreferrer noopener">Fibonacci support</a>.</p>
<p>If this count is correct, wave (3) to the upside has just begun. This means that <strong>AUDUSD ‘s weekly, daily and hourly charts have now aligned and are all pointing north.</strong> Initial bullish targets above 0.7160 are within reach, but given the bigger picture, 0.8500 makes sense, too. Traders, willing to join the bulls here can use 0.6458 as a stop-loss level.</p>
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<p>The post <a rel="nofollow" href="https://ewminteractive.com/closer-look-audusd-latest-rba-hike">A Closer Look At AUDUSD After Latest RBA Hike</a> appeared first on <a rel="nofollow" href="https://ewminteractive.com">EWM Interactive</a>.</p>
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