The chart above presents my short term phasing analysis on the AUDUSD currency pair. This is a follow up post on the previous post on this currency pair in order to fine tune our entries. It seems evident that we are under a similar cyclical circumstance from an 18 month cycle perspective as January of 2016. The above projection takes the 18 month cycle as the largest cycle into consideration. It seems evident that the advances in the AUDUSD is likely to continue going into early AUG and hence long positions are recommended until that time period is reached in the near future. After such a peak is realized we will enter into the 20 week cycle correction that should ideally be milder than the one experienced in the previous 18 month cycle. I am staying long at this current point in time until further notice. The substructure is an absolute beauty to the trained eye. The AUDUSD’s harmonicity is very pleasing and the relationships between the waves in terms of time is close to ideal. This is why I have significant faith in the projection line presented above, although larger cycle could alter the amplitude of the continued advance and the projected decline post AUG of this year.
Notice how accurately the 20 week FLD has been in depicting peaks and troughs of the 20 week cycle, This market was clearly in ‘cyclical’ mode rather than ‘trend’ mode as defined by many market commentators. It is important to note (refer previous post on the AUDUSD) that the 18 year cycle trough has been realized and the trend of the current 18 month wave is significantly more on the upside than the previous 18 month wave which was used to form the projection. This is why there does lie a possibility that this move could translate more to the right! More left translation than the same 20 week cycle within the previous 18 month wave is almost out of the question at this current point in time. It is also worth noting that the 20 week FLD has been taken out and hence the 20 week cycle trough confirmed. The price target based on the FLD projection is 0.7800 for the current 20 week cycle although we have reason to believe that such a target is likely to be exceeded considering the trend is in favor of the AUD rather than the USD.