The analytical chart below was posted on 16th December 2015 in the article titled AudNzd: What we expect next
It was so clear to us that price was in a corrective rally after a 5-wave impulse fall off. We also had an inverted head and shoulder pattern in line. We though that if price rallied to 1.4526 as expected in the manner highlighted, it will further show how other technical systems are engulfed by and subsumed in Elliott wave theory. Elliott wave theory caps them all in a big brotherly manner.
The expected rally was expected to be a 5-wave motive move in what should break above 1.14526 (the neckline of the inverted head and shoulder) and Elliott pattern traders would have been making god pips before chart pattern traders get a confirmation from the breakout.
In the same article, we posted the chart below to track the Intra day Elliott wave pattern that would trigger the bullish ride.
We saw a tripple zigzag pattern and made this proposition
If price is contained above 1.05 and rallied to break above 1.077, we will be prepared to get in line with a long position aiming 1.1548 as the final future price level.
That was the condition to consider a buy trade.
Price never rallied toward 1.077 but rather dips below 1.05 and thereby stretched the tripple zigzag. We dropped it since then and decided to take it back when it is clear what corrective pattern will emerge to drive price up.
We seem to find it in the chart below : A triangle pattern.
The chart above shows that the correction we are seeking for could be a triangle pattern. Triangle pattern often occur at the 4th wave of a motive wave and the b-leg of a corrective wave.
We expect price to be contained above 1.051; a rally from the present level to break the triangle upside should trigger a buying trading opportunity to 1.22 which is an important level.
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