Elliott Wave Analysis: German DAX and AUDUSD
DAX is very strong this week, clearly making an impulsive run from 10630 which can either be wave three of a big strong impulse, or an extended fifth wave. But in both cases we see room for 11000 from current minor red wave iv) that is looking to find a support near 10900.
German DAX, 1h
AUDUSD is moving sideways, so we see more and more signs that pair is actually making a contracting shape. It looks like triangle pattern in progress, currently in subwave D, so market needs more time before breaking out of range, that may send wave C) in play towards 0.7550-0.7570.
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Basic Triangle Pattern: