Elliott Wave patterns can be found on all degrees of trend, even on the smallest time frames. The AUDUSD exchange rate seems to be giving us a good example. If we take a look at its 15-minute chart, we could see something very familiar – a 5-3 wave cycle.
As the chart shows, AUDUSD rose in five waves from 0.7015 to 0.7158 and the fell to 0.7072. According to the Elliott Wave Principle, we should now expect another rally, which has the potential to take the rate above 0.7160. Furthermore, the 61.8% Fibonacci level provides a solid support. As long as the invalidation level at 0.7015 holds, AUDUSD should be looked at from the bullish side.
