AUDUSD Wave Analysis - 21 October 2026
Published on October 21, 2026
Market Overview
The AUDUSD currency pair has shown a significant reversal from a key support area, indicating potential upward movement in the near term. The analysis suggests a bullish outlook for the pair, with expectations of reaching the resistance level at 0.7050.
Technical Analysis
The recent price action of AUDUSD indicates a reversal from the support zone located between the levels of 0.6915 and 0.6865. This support area has historically been effective in reversing price movements, having previously halted wave 2 at the end of July and waves A and C at the beginning and middle of October. Additionally, the lower daily Bollinger Band has contributed to this support.
The upward reversal from this support area has completed the ABC correction (2) that began in mid-September. Furthermore, the price has broken above the daily downtrend line that has been in place since mid-September, reinforcing the bullish sentiment.
Future Projections
Given the strength of the support area and the recent breakout from the downtrend line, the AUDUSD pair is expected to continue its ascent towards the next resistance level at 0.7050. This level previously halted wave i at the start of August, making it a significant target for traders looking to capitalize on the anticipated upward movement.