SHORT TERM PRIMARY CYCLE
Price is currently coming to the end of a primary cycle.
In the diagram price action is currently forming a classic flag pattern.
It is likely that the primary cycle is now turning UP, although this is not confirmed. If price breaks the green (Upper) trend line, this will confirm the beginning of a new primary cycle. Although any rally is likely to be short-lived given that the AUD Index is now approximately halfway through a Major Cycle, see below:
LONG TERM MAJOR CYCLE
Should price break through the red (Lower) trend line this will indicate a pivot point in the longer (Major) cycle turning down. It would be unlikely that price would exceed the recent high (Point A on the chart). The AUD Index has tested this resistance level three times in the last 12 months. If the lower trend line is breached, this would suggest that the AUD Index would be predominantly down for the remainder of 2023.